NSW health authorities say the spread of COVID-19 is slowing in the community after the state recorded its deadliest day of the pandemic with 46 fatalities.
The number of patients admitted to hospital dropped to 2,743, down from 2,781 in the previous reporting period.
Patients in intensive care also dropped to 209, from 212 on Thursday.
Previously, the highest number of deaths recorded in NSW in a single day was 36.
A total of 25,168 new cases were reported in the latest reporting period, with 10,015 coming from rapid antigen tests (RATs) and 15,153 PCR swabs.
Chief Health Officer Kerry Chant said a "variety of indicators" pointed to the spread of the virus slowing in the community.
She said hospitalisations, staff in isolation, absentee data from a wide-range of industries and case positivity rates pointed to declining transmission rates.
"That all gives us a sense that the spread of COVID is slowing and it is pleasing to see and we want to thank the community and acknowledge the actions of everyone in contributing to that," she said.
Dr Chant said seven of Friday's reported deaths were historical and were added after coronial investigations.
She said investigations were ongoing after reports a two-month-old baby who died in December had tested positive to COVID-19.
"The coroner and the forensic pathologist that has supported the coroner are working very hard to get the answers," she said.
NSW government modelling predicted the Omicron wave would peak this week followed by a stabilisation of hospital numbers.
Premier Dominic Perrottet said the state was exceeding expectations despite the pressure being felt by the health system.
"[Friday's figures] is below what we were expecting at this point in time and at the best case scenario, we were expecting over 3,000 people in our hospitals with COVID," in said.
"In a worst-case scenario, it was 6,000 people with COVID."
He said ICU figures were also tracking below the best-case scenario figure of 270 and well below the worst-case of 600.
Dr Chant said she expected high death numbers over the coming weeks, due, in part, to a lag in the reporting of cases.
She said health authorities had reviewed COVID-19 deaths since January 15 of people under 65 years old and of those 28 deaths, half were unvaccinated.
"So my key message is, if you are under 65, think that your health conditions are not severe or you are not can have severe disease, think again," she said.
"The data is clear, please get vaccinated."
NSW Health deputy secretary Susan Pearce said the government would continue to provide detailed data breakdowns every Friday.
"I would like to make a point, though. what those numbers don't show you is the amount of work that is going on in our health system to deliver that result," she said.
Mr Perrottet said the state government would unveil his return-to-school plan, which was presented to national cabinet yesterday, in "coming days".
