NSW has posted a further 21 COVID-related fatalities and 5582 new infections.
Some 1280 virus patients remain in hospitals across the state, with 77 of them requiring intensive care.
Of the positive results returned, 3866 were collected using rapid antigen kits and 1716 processed in labs.
Premier Dominic Perrottet said parents will receive eight rapid antigen tests per student, to be distributed in two drops.
"The packs are there for families and staff to use at their discretion for their own peace of mind, for example, when a student is feeling unwell with a sore throat or cough, or if family members are sick," the premier said on Sunday.
Teachers will also receive the free tests.
Minister for Education Sarah Mitchell said there had been no school closures since students returned this year, despite the levels of community transmission.
"Testing children twice a week was not an easy task and I'd like to thank all of the parents and carers for their efforts in these critical first few weeks of term," Ms Mitchell said.
Early childhood staff will also receive the additional RAT kits to be used when necessary.
Research conducted by the National Centre for Immunisation Research and Surveillance showed that in the final term of 2021, three to four per cent of people exposed to a positive case in school and early childhood settings contracted COVID-19 compared to around 70 per cent in residential settings.
Meanwhile, the state is finishing off a weekend with fewer COVID-19 restrictions after the premier rolled back QR code check-ins and the ban on singing and dancing in hospitality venues.
The two-metre density limit for indoor venues has been scrapped and QR check-ins are only required for nightclubs and music festivals with more than 1000 patrons.
The requirement to wear face masks will also mostly cease next Friday.
Image: Travis Winks