NSW has sustained its deadliest day of the pandemic with 36 Covid-19 deaths recorded in the latest reporting period.
The number of people with the virus in hospital rose to 2,850, while ICU admissions were up slightly to 209.
There were a total of 29,830 new cases in the reporting period, taken from 13,763 RAT tests and 16,067 PCR tests.
Previously, the highest number of deaths recorded in a day was 29.
The latest fatality figure brings the total number of NSW Covid-19 deaths to 919.
Despite the growing death toll, a strained health system and worker shortages across many sectors, Premier Dominic Perrottet was confident about his government's handling of the outbreak.
"Based on the vaccination rate in this state … we can remain safe and will push through this next challenging period of time," he told ABC Radio Sydney this morning.
"This is not simply a New South Wales issue - this is a global issue ... and our settings mirror the settings in Victoria.
"We're not an island here in New South Wales."
Perrottet acknowledged people were anxious about the state's virus crisis, but insisted living with Covid-19 was the only way forward.
"[Lockdowns] might minimise transmission of the virus but then as you open up again we will have the virus spread," he said.
He said the government was considering further support packages for businesses.
"You don't rush support out," Perrottet said.
"What you do is analyse and consult and work out where is the need, where's the best place to provide that support and then deliver it."
A shipment of 12 million rapid antigen tests ordered by the NSW government arrived in Sydney overnight and would be a core component to the Premier's response to the Omicron outbreak.
He said the RATs would be a cornerstone of the NSW government's blueprint to get children back in classrooms. The final return-to-school plan is expected to be announced tomorrow.
"To all parents, from the state's perspective, we are completely committed to ensuring that we have schools open on day one term one in a safe environment for both your children and for teachers right across the board."
"The World Health [Organisation] has said, schools should be the last to close and the first to open."
While the use of the home-testing kits was encouraged by health authorities since December, the Premier said the Therapeutic Goods Administration (TGA) only approved them a month earlier.
"I think globally the experience in terms of the spread of Omicron has been more widespread than anyone anticipated," he said.