NSW has recorded 466 new local cases and four deaths overnight, making it the "most concerning day" the pandemic so far in the state.
Premier Gladys Berejiklian said it was the largest jump in cases seen in a night after 390 cases were reported the day before. At least 60 were infectious in the community, but Ms Berejiklian said that number was likely to go up.
Four people died overnight, a female in her 40s who had been in palliative care, a male in his 70s, a male in his 80s and a female in her 70s.
There were 16 cases in the Hunter New England area. The Premier said while there were no cases in Armidale, health experts had advised to continue the lockdown in that area for a further week.
"Given what the area is experiencing the community would understand why that's the case," she said.
In Western NSW there were 26 cases overnight and the Premier said it was likely the lockdown areas would be extended to a wider region. More is expected on that front later today, she said.
Ms Berejiklian also flagged harsher punishments to be introduced from Monday, including increased fines for public health order breaches and enhanced random checkpoints at key roads. She said 500 extra Australian Defence Force personnel would also be deployed to help enforce the order.
The isolation status of 303 people is also under investigation.
Premier Gladys Berejiklian told reporters on Saturday the Cumberland shire is the new front of the virus spread, with Marylands, Auburn and Granville of particular concern.
Bayside, Strathfield and Burwood will be added to the list of LGAs subject to additional restrictions from Saturday.
Additional cases have also been identified overnight in Bexley Banksia and Rockdale.
Meanwhile authorities have ramped up compliance checks in NSW supermarkets this weekend.
SafeWork NSW said inspectors are targeting retailers and specifically supermarkets from Saturday.
"Any business found breaking the rules may be subjected to fines and could face a closure," Director of Compliance Dimitri Argeres said in a statement.
From Monday, the Australian Defence Force will send an additional 200 soldiers to NSW on top of 550 already assisting COVID-19 efforts.