A top infectious diseases expert says a rise in COVID-19 case numbers shows the need to be careful over the Christmas-New Year period.
NSW recorded a surge in COVID-19 cases on Tuesday but the number of people in intensive care has dropped to its lowest number in around four months.
The state recorded 804 new cases on Tuesday with 168 people in hospital and 21 in ICU. More than 93 per cent of the state's population aged 16 plus are fully vaccinated.
Meanwhile, Victoria recorded 1189 new cases and six deaths on Tuesday.
Australian National University professor Sanjaya Senanayake said the case reproduction number had lifted in NSW from 1.19 to 1.47.
"People just have to be careful," he told Nine on Tuesday.
"So, if you can, be outside when you celebrate - better than being indoors.
"If you're indoors and can't physically distance safely, wear a mask and use the QR codes."
Australian Medical Association vice-president Chris Moy said evidence pointed to the new Omicron strain not being as serious as Delta.
"If we are talking about a milder variant, even if it's somewhat more infectious, hopefully it won't be such a threat," Dr Moy told the ABC.
"But on the flip side, if it is really infectious and we get a real peak in cases and say half are serious, it may still be a threat because we will get a large number of people in hospital at the same time."
As the vaccination rate continues to rise, the government has announced Australia will set up its own mRNA vaccine manufacturing facility to produce as many as 100 million vaccines a year, helping the country prepare for future pandemics.
The facility will be built in Victoria as part of a partnership between the federal and state governments, as well as vaccine manufacturer Moderna, and is expected to be operational by 2024.
As well, a two-week pause on allowing visa holders to enter the country without an exemption will end as scheduled on Wednesday.
The decision will pave the way for skilled migrants and international students to return to Australia.
Travel bubbles with Japan and South Korea will also be able to commence.
Prime Minister Scott Morrison has called on states and territories to ease their last remaining COVID-19 restrictions.
Speaking at the Sydney Institute's annual dinner on Monday night, Mr Morrison urged jurisdictions to "facilitate, rather than dictate".
"Australians kept their side of the deal, it is time for governments to now keep theirs; to step back and let Australians step forward," Mr Morrison said.
"To put Australians back in charge of their own lives, relying on the connecting points and relationships that exist between the state and the individual."
© AAP 2021