NSW has recorded 20,324 new Covid-19 cases, 2,712 hospitalisations and 34 deaths, while Victoria saw 13,091 positive test results and 14 deaths.
Both states have recorded lower infections than the previous day, with 20,148 new infections and 30 deaths in NSW, and 16,016 cases and 20 deaths in Victoria.
There are 189 people in ICU in NSW, and 120 in Victoria.
NSW Premier Dominic Perrottet confirmed on Saturday that half of those in intensive care are unvaccinated - adding that although cases numbers are still high, 'lockdowns are not the key'.
He also revealed that students and teachers to be given two free rapid antigen tests every week in the state's return to school plan.
The premier will provide an update at a press conference at 10am on Sunday, where he is also expected to extend a raft of Covid restrictions - including indoor mask mandates and rules in pubs and clubs.
Restrictions on mask wearing, singing and dancing in hospitality venues, entertainment facilities and major recreation facilities were due to be lifted on January 27.
Pictured: A woman walks along an almost empty street at Bondi Beach. NSW recorded 20,148 and 30 deaths on Saturday
The NSW premier (pictured) will provide an update at a press conference at 10am on Sunday
Face masks will be made mandatory for all teachers and high school students, but not for primary school children.
Other measures include vaccine mandates for all teachers and staff as sport, music, assemblies and even school camping trips are given the green light to go ahead when children return to the class on February 1.
The state government hopes to have delivered more than six million RATs to 3,000 public, private and religious schools across NSW by January 26 - even as the rest of Australia faces a supply shortage.
The non-mandatory testing program is set to run for the first four weeks of first term
