New South Wales reported 172 new cases of COVID-19 on Tuesday - 60 of which were infectious in the community before they tested positive.
Of the local cases, 85 are linked to a known case or cluster - 66 are household contacts and 19 are close contacts. The source of infection for 87 cases is under investigation.
Premier Gladys Berejiklian also revealed there had been two deaths - both unvaccinated women in their 80s.
"Tragically I want to extend my condolences to the families and loved ones of the two older women who succumbed to the disease."
Berejiklian urged people to come forward and get vaccinated to protect themselves and their close contacts.
"I'm asking everyone to come forward and get the vaccine. We know the vaccine reduces how contagious you are and that is really critical moving forward."
NSW Health's Jeremy McAnulty said there are 169 COVID-19 patients in hospital. Forty-six of those are in intensive care and 19 people require ventilation.
In the 24 hours to 8pm on Monday more than 84,000 people were tested - compared with the previous day's total of 98,158.
There have been 2397 locally acquired cases reported since June 16 when the first case in the Bondi cluster was reported. One previously reported case has been excluded following further investigation.
There have now been 10 COVID-19 related deaths in NSW in the current outbreak.
The total number of vaccines administered in NSW is now 3,503,140 with 1,370,506 doses administered by NSW Health to 8pm last night and 2,132,634 administered by the GP network and other providers to 11:59pm on Sunday July 25.
The state recorded 145 new cases of COVID-19 in its community on Monday. Of those 51 were infectious in the community.
Meanwhile, Victoria Premier Daniel Andrews announced an end to the state's lockdown on Tuesday, but some restrictions still remain.
"It is also because of the hard work of every Victorian, following the rules, getting tested even with the mildest of symptoms, playing your part to keep your family safe and every family safe, and for us to get through this.
"In terms of where we are today we are able to make decisions and confirm those decisions this morning. Cabinet has been briefed on advice from the Chief Health Officer from 11:59pm tonight, the five reasons to leave home are gone."
But restaurants, bars, cafes and pubs will still be restricted to one person [per four square metre.
Hairdressers and beauticians can also open and workers can return to the office as long as they are at a maximum of 25 percent capacity or 10 people - whichever is greater.
Peope can gather in public in groups of up to 10, but masks are still mandatory both indoors and outside.