Following the two positive cases, Covid restrictions were re-introduced for three days in Greater Sydney, with the return of compulsory masks and visitors in homes limited to 20 people.
A man who lives in Sydney's eastern suburbs has been diagnosed with Covid-19. That includes shopping at supermarkets, shopping centres and other retail stores; on public and shared transport; and at all other public indoor venues including theatres and aged care facilities.
Premier of NSW, Gladys Berejiklian, once again takes a measured approach in her government's response.
The measures, which also cover Sydney's neighbouring regions of Wollongong, the Central Coast and Blue Mountains, were spurred by the detection of COVID-19 in a 50-year-old man, who passed the infection to his wife.
"We know for a fact there's at least one person, if not more, walking around with the virus not knowing they have it or potentially having attended many events and venues", Ms Berejiklian said.
It appeared to be the first time officials had reported the local transmission of an India virus variant in Australia. If they do have any coronavirus symptoms (the most common being fever, a dry cough and tiredness), residents are urged to get tested and isolate until they receive a negative result.
Australia has largely contained the coronavirus outbreak through snap lockdowns, border controls and speedy contact tracing systems, with just over 29,800 cases and 910 deaths since the pandemic began.
The federal government is now under pressure to overturn a temporary travel ban on travelers, including its own citizens, from COVID-ravaged India.
"We are not going to commit to that at this point", Morrison told radio station 3AW on Thursday.