NSW has reported a "disturbingly high" 478 new locally acquired cases of COVID-19, on another record-breaking day with escalating transmissions and eight deaths.
At least 91 of the new cases were circulating in the community for all or part of their infectious period in the 24 hours to 8pm on Sunday.
Among the eight dead was 15-year-old Osama Suduh, the youngest person in Australia to die with the virus.
Three men in their 80s, a man in his 40s, a man in his 70s, a woman in her 70s, and a woman in her 80s make up the other deaths.
The teenager from southwest Sydney died after contracting pneumococcal meningitis and while he also had COVID-19, it was not the reason for his admission or cause of death.
Chief Health Officer Kerry Chant said while he was vaccinated for that bacterial infection, it may not have covered the particular strain involved in his death.
He was too young to be vaccinated for COVID-19.
Dr Chant confirmed an outbreak in a mental health facility at Nepean Hospital in Penrith, along with another ward, had caused 30 cases there.
Premier Gladys Berejiklian described the transmission numbers as "disturbingly high" and warned case numbers in the thousands could occur if people continued to flout public health orders.
"We absolutely could if people keep ignoring the rules."
Escalating cases were recorded in Greenacre, Bankstown, Merrylands, Guildford, Granville, Blacktown, Mount Druitt and Yagoona.
"We need people in those communities to just stay home," she said.
The death toll is now at 56 for this outbreak, which began mid-June, and half of all NSW COVID-19 deaths have come in this outbreak.
All of NSW was placed under strict lockdown on Saturday for one week while Greater Sydney and surrounding regions are in lockdown until at least August 28.
The premier defended announcing the precautionary statewide lockdown on social media and not at her press conference beforehand, saying she was advised after it occurred of additional areas of concern.
"There would have only been a handful of local government areas that weren't affected in regional NSW and it's important for us to make sure we get the message out as quickly as possible."
Police Commissioner Mick Fuller said almost 18,000 police were being supported by 800 members of the Australian Defence Force to enforce health orders.
Police had until now been issuing four cautions for every ticket, but Mr Fuller flagged a tougher approach, saying it reaches a point "where you say people aren't getting this".
"In fairness, I have asked officers to be active in terms of taking strong action," he said.
But authorities still had discretion and would continue recording reasons for both taking action or not, with a focus on LGAs of concern.
Tougher non-compliance fines up to $5000 are now in place as Greater Sydney begins its eighth week of lockdown.
Police issued 500 fines on Sunday, including 31 to teens at an eastern Sydney beachside party.
People in Greater Sydney are now limited to exercise or shopping within five kilometres of their home and they need a permit to travel to regional NSW, while single people in 12 LGA hotspots will need to register their "single buddies".
A test and isolate payment of $320 will also start this week for workers 17 and over who have symptoms of COVID-19 and live in government areas of concern.
Numerous COVID-19 exposure sites were identified overnight at Mudgee, Orange and Bathurst.
There are also increasing concerns for Dubbo and Walgett, with high levels of Indigenous Australians who are not adequately vaccinated, as well as a case at Bourke.
"I'm particularly concerned at the moment around Dubbo and the impact COVID is having on Aboriginal communities in Dubbo," Dr Chant said.
© AAP 2021