The number of new local COVID-19 infections in NSW has spiked to a record daily high of 239 as the government tightens restrictions on masks and movement in eight council hotspots in west and southwest Sydney.
Two more people have died - a woman in her 90s and man in his 80s, both from southwest Sydney - taking the death toll for the outbreak to 13.
Premier Gladys Berejiklian acknowledged the number of locally acquired cases would get worse in coming days, given the high number of people infectious while in the community.
"We can only assume that things are likely to get worse before they get better," she said on Thursday.
But she rejected suggestions her government had failed by imposing restrictions too late and too gradually, saying there was "no perfect way" to respond to an outbreak of the highly-contagious Delta strain of the virus.
The record 239 cases in the 24 hours to 8pm on Wednesday surpasses the previous day's record of 177 cases in the latest outbreak which began six weeks ago .
At least 22 of those people were circulating in the community for part of their illness and 66 were infectious in the community for the entire time.
The isolation status of 70 cases remains under investigation.
The previous daily high in the pandemic was 212 in March 2020, when most cases were coming from overseas before the hotel quarantine system was introduced.
The government has already introduced new measures targeted at two million people in eight western Sydney local government areas where people cannot leave the area unless they are essential workers.
On Thursday, Ms Berejiklian went even harder, saying she had accepted NSW Police advice those virus-hit LGAs should now be subject to harsher compliance measures.
This means making masks mandatory at all times - including outdoors - and restricting people to within five kilometres of their home.
The fine for failing to wear a mask will increase from $250 to $500 and police will be able to shut down businesses that repeatedly breach public health orders.
Police Commissioner Mick Fuller says "nothing is off the table between conversations between the premier and myself" in terms of stronger compliance, saying officers will be going door to door looking for people in the wrong house.
He didn't rule out involving the military.
"We are not stretched at the moment but clearly if there was an LGA expansion, I would absolutely have the confidence in expanding the Australian Defence Force (role) ... they are working with us now in hotel quarantine."
The new cases came from almost 111,000 COVID-19 tests - another daily record - while there are 54 COVID-19 patients in NSW in intensive care with more than 20 on ventilators.
Ms Berejiklian denied her government had failed the people of NSW by slowly ramping up restrictions as daily infections rose, rather than moving quickly.
"We have harsher restrictions in place than any other state has ever had and even if you look at the mobility data we have ... the vast majority of our citizens are actually doing the right thing," she said.
"All governments are making their way through the Delta strain around the world, there is no perfect way to deal with a pandemic.
"If you look at other places around the world and the way the Delta strain has taken over communities, even where vaccination rates have been higher ... we can take comfort in the fact that we haven't had thousands of cases."
Chief Health Officer Kerry Chant said more than half of the people with the virus were under 50 and 25 per cent of people over the age of 70 were yet to get their first dose of a vaccine.
Other lockdown measures, announced on Wednesday, include more financial support for businesses and workers, a singles bubble for people who live alone and a partial reopening of the construction sector from Saturday.
Year 12 students will also be able to return to school on August 16, with rapid antigen testing used to detect cases. Up to 40,000 Pfizer doses will be redirected to vaccinate students in virus-hit areas.
However, students won't be forced to get the shot to re-enter classrooms.
Meanwhile, nine people - including eight teenagers - are accused of breaking lockdown and becoming involved in a high-speed police pursuit in the Hunter.
