Another 249 new local cases of COVID-19 and three deaths have been recorded in NSW, as travel restrictions ease between the state and Victoria.
NSW Premier Dominic Perrottet and his Victorian counterpart Daniel Andrews issued a joint statement highlighting the change, which came into effect on Friday.
Victoria has declared all NSW local government areas are now 'green zones'.
This means there are no testing or quarantine requirements for NSW residents travelling to Victoria, although visitors still need to obtain a permit verifying they do not have COVID-19.
Unvaccinated Victorians remain barred from NSW for travel or recreation.
While people from NSW will not have to quarantine upon arrival in Victoria, they will be subject to the state's rules preventing the unvaccinated from attending hospitality venues and other settings.
Mr Perrottet told Sydney radio 2GB on Friday the change was "great for business and great for families".
Families will be able to reunite and travel by air on one of the busiest aeroplane routes in the world.
"We're slowly getting back to normality," Mr Perrottet said.
There were 80,581 tests in the 24 hours to 8pm on Thursday.
NSW has fully vaccinated 89.1 per cent of its population aged over 16, while 93.8 per cent have had at least one dose.
Victoria is not far behind, with 92.7 per cent single-dose coverage and 82.5 per cent double-dosed.
Despite other restrictions lifting, NSW school students sitting the HSC from next week will still have to wear masks when they do their exams.
Mr Perrottet said while he had been looking at the issues, ultimately the rule would remain in place.
There are concerns elderly examiners could be put at risk if children are not wearing masks.
Wearing a mask also reduces the risk of a student being deemed a close contact and having to isolate if there is a case at a school, Mr Perrottet said.
NSW on Thursday reported more than 300 cases for the first time in more than a week. The state recorded 308 new local cases and four deaths.
Cases spiked in the Hunter New England Local Health District, which has become the state's latest hotspot.
