New South Wales has recorded 97 new local COVID-19 cases on Friday.
Of the cases, 63 are linked to a known case or cluster and the source of infection for 34 cases remains under investigation, NSW Health reported.
"Forty-six cases were in isolation throughout their infectious period and 17 cases were in isolation for part of their infectious period. Twenty-nine cases were infectious in the community, and the isolation status of five cases remains under investigation."
Premier Gladys Berejiklian said it is "incredibly concerning" so many people who were infectious had been out in the community.
"I can't stress to the community my absolute concern that we need to work harder at reducing mobility and reduce our interactions with others if we will bring the situation under control and to see a decline in cases infectious in the community."
New South Wales has now recorded 6527 cases since the beginning of the pandemic.
This comes after Victoria reported 10 new local cases on Friday morning, although four were previously reported.
Victoria's Department of Health confirmed the new local cases on Friday morning along with one case acquired from overseas, which brings the state's active case number to 36.
"Four of the 10 locally acquired cases were announced yesterday. All 10 are linked to the current outbreaks," its statement said.
This comes as residents wake to the city's latest COVID-19 lockdown - the fifth the state has implemented so far, ABC News reported.
Victoria Premier Daniel Andrews confirmed the restrictions on Thursday evening which began at 11:59pm and will run until at least 11:59pm on Tuesday (local time).
Andrews said the measures are a repeat of the "successful strategy" implemented during the last lockdown.
"That was successful then, and this will be successful now," he said.
"If you were authorised to work then, you will be authorised to work now. If you were closed then, you will be closed now."
As a result of the latest outbreak, New Zealand's COVID-19 Response Minister Chris Hipkins announced the quarantine-free travel bubble with Victoria would be paused.
The pause means anyone who has been in Victoria after 1:59am (NZT) on July 16 cannot travel to New Zealand from any state in Australia until further notice.
Hipkins said he understood the "frustration and inconvenience" that comes with disrupting the bubble, but reiterated it was "the right action to take" due to the uncertainty around community transmission in Melbourne.
The Government will review the pause on Monday.
