Victoria has confirmed 37,994 new Covid cases as NSW reported 25,870 infections and new close contact rules come into force to get food back onto Australian supermarket shelves.
Transmission in both states rose slightly on Tuesday - up from 30,062 in Victoria and 20,293 in NSW the day before.
NSW reported 20,293 new Covid-19 cases on Monday, marking a significant dip on the previous day's tally of 30,062.
However, the 18 deaths recorded with Covid surpassed the previous high of 16, which was hit on Sunday.
Victoria also reported a dip in cases and recorded 34,808 new infections - marking a 21 per cent drop from the previous 44,155 cases. The state also recorded two deaths.
As of this week, children aged between five and 11 are eligible for the vaccine for the first time ever in Australia with NSW and Victoria racing to get as many children vaccinated before the start of the school term.
Health Minister Greg Hunt says there will more than enough vaccines available for the 2.3 million children eligible for a jab with three million doses on hand over January
But Opposition Leader Anthony Albanese said parents are anxious because they can't get appointments for their children
While just over 78 per cent of children aged 12 to 15 in NSW have been fully vaccinated, premier Dominic Perrottet said he was determined to send children back to the classrooms on January 28.
With a three week gap recommended between jabs, very few will be fully vaccinated when classrooms open their doors amid the nation's biggest outbreak.
Queensland has made the decision to delay the start of the school term by another two weeks and won't send children back to the classroom until February 7.
'More than 18,000 kids aged five to 11 have caught COVID-19 since the start of the pandemic, which highlights why vaccination is so important,' premier Dominic Perrottet said.
'We saw a great vaccination response for children aged 12-15 years, so we hope parents will book in their younger children before they start or go back to school.
'I want to also encourage anyone who has not yet received a COVID-19 vaccination to do so. This includes adults who had their second dose four months ago and are
