The new cases were recorded in the 24 hours to 8pm on Tuesday from 151,443 tests.
That's a jump of 706 from the previous day's 3057 cases, from 136,972 tests.
The number of people in hospital increased by 18 to 302 and 40 of them are in ICU, one more than the previous day and 12 are on ventilation.
Another two people have died from the virus: a woman in her 80s from southeastern Sydney and a woman in her 70s from southwestern Sydney.
Transport Minister David Elliott was asked about speculation the government was considering a plan to make the unvaccinated pay for their own health care.
"The premier and the entire government has always said we have to have personal responsibility," he told reporters on Wednesday.
"That responsibility is everything from getting vaccinated to getting a booster to in my mind, taking responsibility for the fact that you won't be able to work if you expose yourself to it."
Meanwhile, Premier Dominic Perrottet will raise the issue of the booster shot interval when national cabinet meets on Wednesday.
Currently, boosters are due five months after a second dose, but NSW wants that moved forward to four months or less.
Mr Perrottet, who is resisting calls to reimpose a mandate for wearing masks indoors, said booster shots were key to curbing the spread of Omicron.
Close to 40 vaccination venues will remain open for the shots over the holiday period.
People are waiting for hours to get PCR tests, with many anxious to get the all clear to safely attend yuletide celebrations, while others need a negative result to travel interstate.
NSW Health is warning results could take up to 72 hours as labs are overwhelmed.
Health Minister Brad Hazzard said "tourism testing" is putting testing clinics under extreme pressure and delaying results and he's asked other states to reconsider their testing requirements.
For the first time in days Newcastle has relinquished the unwelcome title of having the most new cases.
There were 834 new cases in the South Eastern Sydney LHD, while there were 623 in the Hunter New England, bringing the number of active cases there to 5728.
The vaccination rate remains the same with 94.9 per cent of people aged 16 and over having had one dose, while 93.4 per cent have had two.
Some 81.5 per cent of people aged 12-15 have had one vaccine dose and 78.1 per cent both.
