Australia's New South Wales recorded its biggest daily increase in Covid-19 cases this year Saturday, with health officials warning of a worse for Sydney.

New South Wales recorded 50 new infections Saturday, breaking the previous record for the highest number of daily cases since April 2020, reports said.

Restrictions have been tightened in Sydney, with NSW premier Gladys Berejiklian warning the "really concerning" rise in cases could impede plans to lift lockdown at the end of next week.

Of Saturday's new infections, more than half were people who had spent time in the community while infectious. Sydney reported almost 440 new cases since mid-June, officials said.

"When you know there are 26 infectious cases in the community, the only conclusion we can draw is that things are going to get worse before they get better," 9News quoted Berejiklian as saying.

Sydney is now in its third week of hard lockdown but continues to post record new infections among a population that is mostly unvaccinated, Agence France-Presse said.

Sydney's lockdown could be extended beyond three weeks, unless there was a turnaround, Berejiklian warned.

Under the new lockdown rules, outdoor exercise in groups of more than two will be prohibited and existing restrictions on nonessential trips will be more strictly enforced.

"Unless there is a dramatic turnaround in the numbers, I can't see how we would be in a position to ease restrictions by Friday," she said in quotes by The Guardian.

Meanwhile in the Northern Territory, Chief Minister Michael Gunner declared, "We did it!" as restrictions on venues like fitness centers and mask rules were lifted as a result of authorities putting under control the territory's outbreak figures.

Victoria reported its ninth day of zero new local cases, as pandemic restrictions were also loosened, allowing for people to go without masks in offices.

In Queensland, health officials also reported zero cases.