It was the second consecutive day of record infections across the state, and came from more than 127,000 tests in the 24 hours to 8pm on Thursday.

The escalating case numbers are being driven by super-spreader events at large venues like pubs and nightclubs, exacerbated by the highly-transmissible Omicron variant.

Some 185 cases of the variant have now been confirmed in NSW, but health authorities suspect there are many more.

One new death was also announced on Friday, a woman in her 60s from northern NSW who was not vaccinated and had underlying health conditions.

But Premier Dominic Perrottet has again urged the state's residents to keep things in perspective as cases rise.

Some 215 people are in hospital with the virus - up from 23 on the day before - with 24 of them in ICU and eight on ventilators.

Intensive care numbers peaked at 244 in September, ten days after the state recorded a previous record of 1599 local cases.

"It is obviously going to be a challenging time. We accept that," the premier told reporters on Friday.

"But we need perspective.

"Our number one focus is to keep people safe, to keep hospitalisations and ICU numbers down."

On Friday afternoon it was announced that, along with Victoria, NSW will no longer require international arrivals to isolate for 72 hours while they wait for results of a PCR test.

Instead, the fully vaccinated will be required to be tested within 24 hours of arrival and isolate until they receive a negative result.

The changes come into effect from Tuesday next week.

Mr Perrottet says the end to isolation will make it easier for international travellers and help keep flight crew on the job.

The rules for masks and check-ins were relaxed on Wednesday despite the rising case numbers, with the unvaccinated now able to participate fully in society.

The premier is under pressure from an array of high profile figures - from radio presenter Ray Hadley to Burwood mayor John Faker - to reintroduce them.

Chief Health Officer Dr Kerry Chant is also urging the state's residents to wear masks in indoor settings, although it is no longer required.

The latest significant cluster emerged from a Taylor Swift-themed dance party in the Sydney CBD on Friday, with at least 97 of 600 partygoers testing positive so far.

A series of super-spreader events in Newcastle have caused a wave of infections in the Hunter area, with the district accounting for a third of all the new cases across the state on Friday.

The majority are the Omicron variant.

Two COVID positive men have been fined for attending one of the events - a Wednesday evening party at a nightclub - in defiance of self-isolation orders after they were designated as close contacts.

Health authorities are now urging the Newcastle community to consider delaying social events until after Christmas to keep family gatherings safe.

The spike in cases comes exactly a year after a Sydney airport worker tested positive after a run of COVID-zero in NSW.

That case set in motion a COVID-19 outbreak in Sydney's northern beaches, with the peninsula locked down and the rest of Sydney subject to caps on numbers for Christmas and New Year's Eve events.

The rising transmission rates have prompted NSW Health to announce restricted visits to health facilities.

Patients will be allowed visitors for compassionate reasons and to provide essential needs including palliative care and supporting women in childbirth.

All visitors must be fully vaccinated and follow mask-wearing rules.

"We have not made this decision lightly," NSW Health tweeted on Thursday night.

"We must always prioritise our vulnerable patients and staff who are arguably the most vital workers needed in a pandemic."

NSW Health has also launched a campaign reminding the public to be patient and respectful when dealing with frontline workers as their workload increases.

"Hospital staff continue to work incredibly hard to save lives and treat patients with high-quality healthcare in the face of an unprecedented global pandemic," NSW Health Deputy Secretary Phil Minns said

"The last thing they should expect is to be treated in an aggressive manner while doing what they do best - caring for others."

Australian Associated Press