Health experts have predicted New South Wales could record 100,000 daily COVID-19 cases within weeks.
The state recorded 22,577 new infections and four further deaths.
There were 901 people in hospital with coronavirus and 79 people in the intensive care - up by 69 and 10 respectively from the previous day.
One month ago there were only 144 people in hospital.
There are concerns if numbers continue to spike, wearied healthcare workers and hospitals will struggle to cope.
It's likely that the number of COVID-19 cases is higher than the cases reported, due to delays in testing results.
Earlier this week, Chief Health Officer Kerry Chant said Omicron cases would continue to double every few days.
"We are seeing doubling every two to three to four days," Dr Chant said.
She said people should be seeking PCR tests if they are symptomatic, but if rapid antigen tests come back positive then they should take a PCR test.
NSW Health has warned that testing capacity "is currently under enormous pressure".
The only people getting a PCR (nose and throat swab) should be those who have COVID-19 symptoms; live in a household with a confirmed COVID-19-positive case; or have otherwise been advised by NSW Health to get tested.
Rapid tests have been advised as an alternative, however there is also a significant shortage of them in the community.