NSW has recorded its highest daily amount of Covid-19 cases over the course of the entire pandemic with infections soaring to 2213, while another person has died.
Friday's cases are a jump from 1742 on Thursday and 1360 on Wednesday, with 215 people now in hospital with the virus, 24 of which are in intensive care.
Of the NSW population aged over 16, 93.3 per cent are fully vaccinated against Covid-19 and 94.8 per cent have had at least one dose.
More than 127,000 NSW residents came forward for tests as eager people rush to get tested ahead of Christmas celebrations.
The escalating case numbers are being driven by superspreading events at large venues such as pubs and nightclubs.
The Omicront variant – known to be highly transmissible – is infecting patrons.
NSW Health issued warnings for multiple venues across the Newcastle area on Friday morning, where at least 50 confirmed cases of Covid-19 were present at the time.
"It is likely many of these cases have the Omicron variant of concern," NSW Health said in a statement.
Anyone who attended The Great Northern Hotel on December 11 from 12.01am until close, Finnegan's Hotel on December 11 7pm until close and The Cambridge Hotel on December 11 from 7pm until close, and December 12 from 6pm until close are being urged to monitor for symptoms.
A significant cluster is also emerging in Sydney as the result of a Taylor Swift-themed dance party at Sydney's Metro Theatre on Friday December 10.
At least 97 people who attended the party tested positive as of Thursday evening, with some cases believed to be the Omicron variant.
Two men, both aged 20, have been fined for attending one of the events in Newcastle after they were designated as close contacts and were told to isolate.
The pair both tested positive to the virus and lead to the outbreak of the virus, with more than 200 people since contracting Covid-19.
The transmission rates have prompted NSW Health to issue a "red alert" for hospitals, meaning no one can enter health facilities unless it is critical.