New South Wales recorded 16 new community cases of COVID-19 in the 24 hours to 8pm on Saturday, health officials announced on Sunday.
The news comes as the travel bubble with some Australian states and territories is set to resume just before midnight tonight.
Quarantine-free travel was paused with all of Australia late last month as the country battles a fresh outbreak of COVID-19, with hundreds of community cases being recorded in Sydney in the past weeks.
The recent visit of an Australian man who travelled to Wellington before later testing positive for COVID-19 also sparked concerns the outbreak could spread here, prompting the capital to move to alert level 2.
Restrictions in Wellington were lifted earlier this week and so far no community cases have been reported in New Zealand following the latest scare.
Quarantine-free travel with Tasmania, ACT, Victoria and South Australia is set to recommence at 11:59pm on Sunday, while the travel pause for Western Australia, Northern Territory, New South Wales and Queensland remains in place and will be reviewed on Tuesday July 6.
Travellers to New Zealand must not have been in Queensland, Northern Territory and Western Australia on or after 10:30pm (NZT) on June 26, and must also not have been in New South Wales on or after 11:59pm (NZT) on June 22.
A negative pre-departure test within 72 hours of departure is also now required for all passengers before boarding flights to New Zealand.
In announcing the latest figures for NSW on Sunday, Premier Gladys Berejiklian said 13 of the new cases in the state were in isolation during their infectious period, while one case was in partial isolation. Two cases were in the community while infectious.
Fourteen of the cases were linked to previously confirmed cases.
Berejiklian said the number of cases was starting "to go the right way" but warned numbers could "still bounce around" in the coming days.
"We've seen in the last few days how easy it is for people to unintentionally do the wrong thing, or intentionally do the wrong thing, and that can result in more cases, which is something we don't want to see," she said.
Health officials said no new overseas-acquired cases were recorded in the state, while 45,079 tests were carried out in the past 24 hours.
Berejiklian said despite being slightly down, testing numbers were "encouraging".
The total number of cases in Sydney's outbreak is now 277, with 222 of those linked to the Bondi cluster.
Meanwhile Western Australia recorded one new local case overnight, though the state's Premier Mark McGowan said the case has been in quarantine and "they do not pose a risk to the community".
No new community cases were recorded in ACT or Victoria, while there was one new locally acquired case in Queensland.
