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Sixteen lives were lost in NSW, while 11 were lost in Victoria.
NSW recorded 17,447 new cases, which is up from 15,414 yesterday. Meanwhile Victoria reported 10,674 new infections, a slight increase from the 10,628 yesterday.
Hospitalisations have also increased with 1641 admission recorded in NSW and 444 in Victoria.
Residents will no longer be required to isolate for seven days if they are deemed to be a close contact of COVID-19.
In the latest round of winding down restrictions – which both states have adopted with slightly different conditions – household close contacts will be free to leave the home but must still perform regular rapid antigen tests.
In both states a positive case of COVID-19 must still isolate for seven days.
Queensland health minister Yvette D’Ath said the Sunshine State would likely follow a similar course of action regarding close contacts.