A Queensland traveller in hotel quarantine was the only person to test positive to COVID-19 in NSW overnight, with almost 10,000 people tested in the same 24 hour period.
At a morning press conference, NSW Premier Gladys Berejiklian said this was and "encouraging result, but we can't let our guard down".
"I'm incredibly pleased with how we are tracking at this stage... but it doesn't take much to get a spike," she said.
She said this would become more vital as restrictions around travel and dining out lifted on June 1.
The Premier faced questioning about how she would get her planned public sector wage freeze through the upper house, after cross bench representatives said they would not support the government's plan.
She said she would have to look at job cuts and other measures if the wage freeze was not accepted.
"I ask anybody, if you were in my shoes, what option would you take?" she said.
"The alternative is worse that what we're proposing. Something has to give."
She defended increased spending on infrastructure, as she said "projects equal jobs".
"The NSW government is all about job creation," she said.
She said the government would be making further announcements about lifting restrictions - including those related to church attendance - in the coming days.
Ms Berejiklian also made an announcement about the government's fee-free TAFE courses, saying that 100,000 people had taken up the chance to do a free course during the pandemic.
"It's encouraging to know that whilst we've had these restriction in place... people took up the opportunity to get a course online, free of charge to them," she said.
Of the 21 courses on offer, she said medical administration was most highly sought after course and that just over half courses were taken up by regional students.
They were mostly younger people, and most hadn't studied at TAFE before.