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NSW has reported its first death linked to the Omicron COVID-19 variant, as a Sydney pathology company owned up to a second massive blunder in as many days.

Some 6324 new infections were detected from more than 97,000 tests on Sunday, which is a drop of 12,000 on the number of tests processed the day before.

The number of tests results returned each day has progressively dropped by more than 60,000 over the past four days, as testing sites and laboratories become overwhelmed and wait times blow out amid reduced operating hours.

Adding to the mayhem, a Sydney pathology company has admitted its second mistake in as many days, this time saying almost 1000 people were told they were COVID-19 negative when in fact their results hadn't been returned yet.

On Sunday SydPath confirmed that more than 400 people who initially received a negative result on Christmas Day were notified on Boxing Day they had actually tested positive.

"The emergency response team investigating the cause of this error, has now identified approximately 995 more people, tested on 23 and 24 December, were prematurely sent an SMS advising them their test was negative when in fact their true result had not yet been determined," a spokesperson said in a statement on Monday.

"All of these people have been contacted and advised of the error."

The incidents were a result of human error at a time of unprecedented pressure, they said.

"SydPath have put procedures in place to ensure this cannot happen again."

NSW Health is urging people to only get tested if they have COVID-19 symptoms, are a household contact or have had a high or moderate risk of exposure, in an effort to ease pressure on testing clinics.

It comes as the number of people in hospital with the virus has climbed to 520 - having doubled in the past week.

Some 55 people are in intensive care and 17 are ventilated on Monday as the state reported another three deaths.

Among them was a man in his 80s who became the state's first Omicron death, NSW Health says.

The man acquired his infection at the Uniting Lilian Wells aged care facility in North Parramatta. He was fully vaccinated but had underlying health conditions.

Another man in his 80s and a woman in her 90s also died.

With infection rates rising, NSW has reverted to restrictions scrapped less than two weeks ago.

Hospitality venues return to the one person per two-square metre rule and QR codes are compulsory from Monday.

NSW Health Minister Brad Hazzard has also revealed the government is "in deep conversation" about lifting isolation requirements for health workers exposed to COVID-19 to stem looming staffing shortages.

They would wear fitted P95 masks and full personal protective equipment, Mr Hazzard said.

NSW Labor health spokesman Ryan Park says the testing chaos and hospital staffing woes are evidence of a government without a plan to manage the latest spike in infections.

He wants the government to lobby for support from the Commonwealth or other states, which during other stages of the pandemic has come in the form of extra nurses and defence force members.

More than four in five NSW residents aged between 12 and 15 are now fully vaccinated. This increases to 93.5 per cent for people aged 16 and over.

© AAP 2021

Marcus Harris' crucial Test innings could come at a financial cost.

The Australia opener edged and near-missed his way to 50 after lunch on day two of the Boxing Day Test.

It is his highest Test score in 18 innings, going back to his career-high 79 against India in the 2019 New Year's match, and his third half-century.

He had also top-scored as Australia reached a shaky 4-148 at lunch.

But however this knock ends up, it will probably leave Harris out of pocket.

He is likely to be fined after the stump mic clearly caught an exchange with English bowler Ben Stokes.

Harris was given out lbw off Stokes, but he successfully reviewed the decision.

He immediately called for the review, suggesting Harris was confident there had been an inside edge onto his pad.

After the hotspot technology showed nothing to help the Australian, Snicko clearly picked up the inside edge.

Stokes then asked Harris what had happened.

"I wasn't, like, 100 per cent sure ... I thought it might have clipped both pads and maybe an inside edge," the Australian told him.

"Hotspot's f***ing hopeless."

Teammate Travis Head was fined for swearing at himself while batting in the first Test.

But Harris' expletive would be nothing compared to the swearing under their breath from the English pacemen as he continually frustrated them.

They had beaten his outside edge several times and Harris never looked fluent.

Still, he was there, having faced 128 deliveries to lunch.

As the Steve Smith and Marnus Labuschagne dismissals showed, this MCG green top continues to be difficult for batting.

Unlike England on day one, Harris had played no reckless shots.

The Ashes are going so badly for England, they might be playing Harris back into form.

After Harris only managed three and 23 in Adelaide's second Test, he looked unlikely to play at his home ground on Boxing Day.

But coach Justin Langer and the selectors have stuck with Harris in the hope that they can finally translate solid Sheffield Shield form into consistent Test runs.

© AAP 2021

Cruising Yacht club of Australia commodore Noel Cornish says sea conditions rather than strong winds was the main reason for the rash of retirements in the Sydney-Hobart, with more than a quarter of the fleet out of the race in little more than 18 hours.

By the end of Boxing Day, 18 of the 88 starters had pulled out and seven more retired on Monday morning.

The three supermaxis were all still racing and at the front of the fleet, with Monaco's Black Jack leading from Sydney's LawConnect and Hong Kong's SHK Scallywag 100.

"The biggest thing on these boats is slowing it down, so we slowed the boat down and managed our way through what we needed to get done and came out the other side," LawConnect's Ty Oxley said.

The most prominent casualty on Monday was Alive, which won overall honours in 2018 and finished fourth a year later.

The 66-foot Tasmanian yacht suffered hull damage and was heading back to Sydney.

Four Sydney yachts also retired, Oz Design Patrice Six (engine issues), Philosopher, (internal damage) Chancellor (sail damage) and Kayimai (engine/electrical issues).

Victorian Cookson 50 Extasea retired with engine issues and Queensland 39-foot yacht Huntress pulled out with no reason specified.

"I think the seaway is what has been causing the issues," commodore Cornish told AAP.

"The southerly at up to 30 knots is not an unusual southerly for this sort of race.

"But the north travelling south current going against that 30 knot southerly is what has caused quite steep seas and that's what has done the damage."

The smaller boats have been particularly hard hit with almost two-thirds of the retirements coming in the 46-foot and under contingent.

"I guess it's harsher on them, you've got a two metre swell or a wave coming at you," Cornish added.

"If you are in a small boat that's going to hit you a bit harder than a large one.

"They will be the ones that will really feeling it out there."

The commodore said while the fleet would probably have to contend with strong winds for a little longer, but expected conditions to ease later on Monday.

"I think as the day progresses it's due to abate as a southerly front just moves through and moves up the coast," Cornish said.

Tasmanian boat Sidewinder was the line honours leader among the Two-Handed boats.

Queensland 40-foot boat Fruit Salad (Salid) 3, and NSW TP52s Celestial and Ichi Ban were among the early handicap leaders.

© AAP 2021