New South Wales recorded its first Omicron-related death on Monday as the state's Covid outbreak grew by 6324 new cases.
The man in his 80s from western Sydney died at Westmead Hospital. He was among three deaths recorded.
There are currently 520 Covid cases admitted to hospital in NSW, with 55 people in intensive care, 17 of whom need ventilation.
New restrictions have now come into force for the holiday season as the state battles to contain a huge surge coronavirus cases.
Masks are compulsory in all indoor, non-residential settings, including for hospitality staff and in offices, unless eating or drinking.
Venues and patrons must also now follow the one person per two square metres rule indoors at pubs, clubs, restaurants and cafes. However, the rule will not apply in outdoor spaces such as beer gardens.
QR code check-ins at retail and hospitality are also making a return in a bid to stop the spread.
The process was initially scrapped after the state hit 90 per cent fully vaccinated. All rules will remain in place until January 27.
Covid test mishap
Almost 1000 additional people have received potentially wrong Covid test information from a Sydney pathology lab, just one day after it incorrectly told 400 infected people they had tested negative.
SydPath – operated by St Vincent's Hospital – confirmed on Monday afternoon that approximately 995 extra people, tested on December 23 and 24, were prematurely sent an SMS advising them their test was negative when their true result had not yet been determined.
The clinic said all people had been contacted and advised of the error and would receive their accurate test results by Monday night.
The lab again blamed high testing volumes for the "human error", which is linked to the testing bungle that necessitated the Boxing Day apology.
"Once again, we are sincerely sorry for this error and acknowledge the significant impact it has had on those involved," SydPath said in a statement.
"We have identified what occurred and can confirm it was related to a specific human error."
Sydney's Omicron surge has seen the state's testing capacity pushed to the brink as thousands wait for hours to be swabbed for the virus.
Return times for results have also stretched out to between 48 and 72 hours.
NSW Health Minister Brad Hazzard on Sunday warned "we're all going to get Omicron", as cases in the state continued to climb.