Prime Minister Scott Morrison and NSW Premier Gladys Berejiklian have announced a COVID support package costing about $500 million a week.
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One person died in NSW.
Mr Morrison said the pandemic continued to evolve and state, federal and international governments must work together.
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He said NSW had done an "exemplary job saving lives and livelihoods".
Mr Morrison said the situation in NSW was different to Victoria's most recent lockdown, as it was more severe and more serious.
He said as a result a new support payment system needed to be created for long-term lockdowns.
A COVID-19 disaster payment of up to $600 a week will be available to anyone in NSW who has lost more than eight-hours work.
The payment will become recurrent as long as the lockdown is in place.
Small and medium businesses, with a turnover between $75,000 and $50 million, will be eligible for support payments of $10,000 per week.
The businesses must have a decline in turnover by 30 per cent and should not reduce headcount.
Businesses with turnover under $75,000 will be eligible for $1500 a week.
Evictions and rental rises have been banned for sixty days.
The payments will be jointly-funded.
Watch the pair speak below.
Digital journalists with The Border Mail.
Digital journalists with The Border Mail.
