New South Wales has recorded 830 new cases of Covid-19 and three deaths while Victoria has recorded 65 new cases.
It's the highest number recorded by any Australian jurisdiction in a 24-hour period.
A man in his 60s from south-west Sydney died at Royal Prince Alfred Hospital. He acquired his infection at Canterbury Hospital.
A woman in her 80s from south-west Sydney died at Wollongong Hospital.
A man in his 70s from south-east Sydney died at St George Hospital, where he acquired his infection.
NSW Health Minister Brad Hazzard praised the vaccination programme in the state.
"I'm pleased, very pleased, that our vaccination rate in New South Wales is now quite extraordinary.
"I thank the residents of New South Wales are coming out in such great numbers to be vaccinated. I am advised that in fact, New South Wales is now amongst the highest, if not the highest, in the world in terms of vaccination rates and that only happens when the citizens of New South Wales come forward to try and keep themselves, their families and the balance of our community in New South Wales safe."
NSW Health administered nearly 45,000 vaccines in the last 24 hours.
There are 550 Covid-19 cases in hospital, with almost 100 people in intensive care, 31 of whom require ventilation.
Of today's new cases, 137 were linked to a known case or cluster and the source of infection for 693 cases is under investigation.
New South Wales yesterday recorded 825 locally aquired cases and three deaths.
In Melbourne a second case has been linked to the Royal Melbourne Hospital.
There will be three more cases in tomorrow's numbers from the Royal Melbourne Hospital.
Victorian health authorities said they expect the number of cases to grow.
PM defends government approach
Prime Minister Scott Morrison defended today Australia's lockdown strategy for tackling the coronavirus, saying it would stay until at least 70 percent of population is fully vaccinated, as daily infections break records.
"You can't live with lockdowns forever and at some point, you need to make that gear change and that is done at 70 percent," Morrison said in a television interview on the Australian Broadcasting Corp.
Lockdowns are a key element of the federal government's strategy to rein in outbreaks until the 70 percent level is reached, with borders being re-opened gradually when the figure climbs to 80 percent.
But they are taxing the patience of many.
Police arrested hundreds of people on Saturday during anti-lockdown demonstrations in Sydney and Melbourne, the capitals of the two most populous states, New South Wales and Victoria, which are under a strict lockdown.
- ABC with Reuters