Another 24 people have died from COVID-19 in Queensland, 20 in New South Wales, 21 in Victoria, two in Tasmania, two in South Australia and one in the ACT.
The number of patients in NSW hospitals fell from 2,068 to 1,906. Of those, 132 are in ICU, the same as Tuesday and slightly down from Monday's 137.
NSW reported 10,312 new cases of COVID-19. These case numbers are up from 9,690 on Tuesday and 7,347 on Monday. Last month, the state recorded an average of 30,000 cases a day.
While the number of COVID-19 infections recorded across the state has peaked and fallen, the number of people dying with the virus remains stubbornly high.
Meanwhile, visiting rules in public hospitals are under review after a backlash from families who have been unable to spend time with dying relatives.
Health Minister Brad Hazzard has been under pressure after several people told heartbreaking stories about their loved ones dying alone because of strict visiting rules in public hospitals.
Mr Hazzard says it's difficult to strike a balance between showing compassion to families and protecting other patients from COVID-19.
"I am working with NSW Health and with the doctors and with the nurses to develop a set of guidelines which hopefully strike the balance and making sure there is compassion and care," he told 2GB Radio on Wednesday.
"What I have said to [NSW] Health is surely, surely compassion, concern and common sense should be at the centre of what's happening."
About 2.5 million people come into the state's hospital system every year and the welfare of all patients had to be taken into consideration, he said.
"It is a really difficult situation," he said.
More than 1,600 people have died in NSW from COVID-19 and more than a million have contracted the virus.
In some hospitals, there had been major breakouts of the virus which led to more deaths.
"So it's a constant balancing act," he said.
Victoria doubles down on boosters
In Victoria, 542 people are in hospital after contracting COVID-19, down from 575 on Tuesday, with 71 in ICU and 27 on ventilators.
On Wednesday the state recorded 9,908 infections, up from 9,785 cases on Tuesday and 8,275 cases on Monday.
The new cases include 6,281 from rapid antigen tests (RATs) and 3,627 from PCR tests, the health department confirmed on Wednesday.
These figures come following Prime Minister Scott Morrison's announcement on Monday that travellers who have had two doses of a COVID-19 vaccination would be welcomed back to Australia - more than 700 days after the pandemic halted most international travel.
But Victorian Premier Daniel Andrews on Tuesday flagged international visitors coming to Victoria could have to fall into line with rules applying to state residents.
These rules require people going to hospitality venues and major events to have had their two doses, plus a booster shot.
"It'll apply here, in the state of Victoria," he told reporters when asked if the same rules would apply.
Queensland's deadliest day of pandemic
Queensland has recorded its highest daily COVID-19 fatality count since the start of the pandemic, confirming the deaths of 24 people with the virus.
The total includes 16 aged care residents and comes as the state reports another 6,902 new COVID-19 cases.
It comes as Queensland hits the 90 per cent double dose vaccination mark for people aged 16 and over.
Premier Annastacia Palaszczuk said coronavirus outbreaks in aged care were an issue across Australia.
"These are families that are going through a very tough time at the moment and it is very difficult to announce these deaths each day," she told reporters on Wednesday.
Two deaths recorded in both Tasmania and SA
Tasmania has recorded two new COVID-19 deaths, as the state's back-to-school plan is put to the test on the first day of term one.
Tasmania has reported 574 new infections, a drop from the 601 recorded on Tuesday.
The deaths, reported on Wednesday, take the state's pandemic toll to 22, with nine of those occurring since borders reopened in mid-December.
Ten people are being treated in hospital for the virus, with one of them in intensive care.
It comes as some 60,000 public school students return to the classroom.
South Australia reported two further deaths and 1,671 new cases on Wednesday, well above the state's seven-day average of 1,369.
The rise came a week after about 35 per cent of the state's school students returned to classrooms, though it remained unclear if students or staff contributed significantly to the increase.
SA Health said the latest deaths were a woman in her 60s and a man in his 90s, taking the toll since the start of the pandemic to 139.
South Australia has 210 people in hospital, including 18 in intensive care where three people are on ventilators.
The state's total number of active infections sits at 14,312.
ACT records one COVID-19 death and 475 new cases
A man in his 90s has died from COVID-19 in the ACT, as the capital recorded a further 475 new infections.
The man is the 31st person to have died from COVID-19 in the ACT since the pandemic began and is the fifth to die this week.
Case numbers were slightly down in the ACT on Wednesday, with 281 new infections from PCR tests while there were 194 positive RATs.
While the number of patients in hospital for COVID-19 has decreased from 55 to 54, the number of those in intensive care has risen.
NT reports 1,128 cases
The Northern Territory has reported another 1,128 COVID-19 infections, along with a dip in hospital admissions.
SecureNT said Wednesday 174 virus-positive people are in hospital, down slightly from 178 on Tuesday.
Four of those are in intensive care.
Active infections across the Territory have been put at 7,460, while case numbers reported on Tuesday have been revised up from 1,092 to 1,124 following the inclusion of more RAT results.
With AAP.