Newcastle COVID outbreak: Premier Dominic Perrottet and NSW health minister Brad Hazzard say focus now on hospitalisations not case numbers

The NSW government is placing more and more focus on "personal responsibility" and living alongside the virus as mask and QR codes are relaxed on Wednesday.

It comes as more than 200 cases have been linked to the Argyle House super-spreader event last Wednesday; and at least a third of the people who attended a medical ball at NEX on Friday night tested positive to COVID-19.

Another 1000 close contacts have been identified as attending Finnegan's Hotel on Friday, December 10, at the same time as at least six positive COVID cases.

There have been 424 COVID cases recorded in the Hunter New England health district in the 24 hours to 8pm on Tuesday - up from 224 on Monday - with most of those cases linked to super-spreader events in Newcastle nightclubs and other large gatherings.

There were 415 cases in the Lower Hunter, including 243 from the Newcastle LGA, 76 from Lake Macquarie, 69 from Maitland, 18 from Port Stephens, seven from Cessnock and two from Singleton.

There are seven people in Hunter hospitals, and three in intensive care.

NSW Health said the "overwhelming majority" of the cases in Newcastle will be the highly transmissible Omicron variant of concern.

Premier Perrottet said he had "complete confidence" in the state's health system, and case numbers alone were no longer the "most important factor".

"Currently 24 people are in ICU, and that is a positive thing," he said.

"If we continue to look out for each other... we will ensure we keep that hospitalisation rate down.

"Get that booster shot. It is incredibly important."

Health Minister Brad Hazzard said for almost two years, the concern has been whether the health system could cope with the increased number of patients presenting to hospital.

"Our hospital system is well equipped to look after what may come," he said.

"We try to keep the reproduction rate below one - that generally means a declining number of cases. We are seeing a very substantial increase in the coronavirus, and every two-to-three days, we are seeing a big increase, a doubling every two-to-three days.

"We are therefore on alert and cautious. But we are trying to make sure we normalise, as far as possible, the way we live our lives."

Mr Hazzard said the jump from 180 cases two weeks ago, to 1360 cases on Wednesday "tells us" we have a responsibility to look after ourselves, our friends and families.

Modelling has predicted that by the end of January, the state would be looking at 25,000 cases every single day.

"About 175,000 in a week," he said.

"Vaccines are not stopping transmission. The transmission seems to be quite high and it may well be spreading across NSW as we talk about it.

"It would appear on the early evidence... that the severity of illness is not as bad as it was with previous variants."

NSW chief health officer Dr Kerry Chant said the "big uptick" in cases were being driven by the Omicron variant.

"Particularly in Newcastle, we have had a number of super-spreader events," she said.

"What we don't know yet is clinical severity.

"We do know boosters are critical, because the current virus does seem to evade your immune system, and that is what it contributing to Omicron's growth."

She urged everyone to continue to wear masks in indoor environments, despite mask mandates lifting.

"I know a lot of people have had their Christmas plans interrupted, limit your interactions so we can keep those special occasions not impacted by COVID," she said.

Bigger penalties will now apply if people fail to test, isolate, and quarantine as required.

Penalties for non-compliance with the isolation, testing and quarantine requirements have increased to $5,000 for individuals - up from $1,000, and $10,000 for corporations - up from $5,000.

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