NSW and Victoria will no longer require international arrivals to isolate for 72 hours while they wait for results of a PCR test.
Instead, the fully vaccinated will be required to be tested within 24 hours of arrival and isolate until they receive a negative result.
The changes come into effect from Tuesday next week.
NSW Premier Dominic Perrottet said the end to isolation will make it easier for international travellers and help keep flight crew on the job.
The rules for masks and check-ins were relaxed on Wednesday despite the rising case numbers, with the unvaccinated now able to participate fully in society.
The premier is under pressure from an array of high profile figures - from radio presenter Ray Hadley to Burwood mayor John Faker - to reintroduce them.
Chief Health Officer Dr Kerry Chant is also urging the state's residents to wear masks in indoor settings, although it is no longer required.
Mr Perrottet on Friday urged "perspective" as he faces pressure to reintroduce COVID-19 restrictions amid record-high case numbers a week out from Christmas.
The state recorded 2213 cases in the 24 hours to 8pm on Thursday.
That tally is more than 600 cases higher than a daily record that stood until this week, and four times the case numbers seen just one week ago.
Premier Dominic Perrottet appears determined to hold his course and encourage individual responsibility, rather than reimpose restrictions like mandatory masks in retail settings.
He has stood by his government's plan to ease restrictions on mask-wearing and check-ins on Wednesday, despite the escalation in cases.
"It is obviously going to be a challenging time. We accept that," the premier told reporters on Friday.
"But we need perspective.
"Our number one focus is to keep people safe, to keep hospitalisations and ICU numbers down."
Some 215 people were in hospital with the virus on Friday, a rise on 23 from the previous day.
NSW Premier Dominic Perrottet Source: AAP
Intensive care numbers have remained fairly steady for weeks, now at 24. Eight people are ventilated.
Deputy Premier Paul Toole on Friday said the government would keep an eye on the numbers and continue to look at advice.
Rules around masks will be a conversation the government will "continue to have in the coming days and weeks".
But, he said, "we are sticking with our road map at this point in time".
Individuals can make the decision to wear masks if they are in high-risk areas, he said.
Mr Toole made it clear the government is not looking at imposing a localised lockdown on Newcastle, despite a huge surge in infections.
Thirty per cent of the new cases - a total of 674 - were diagnosed in the Hunter New England Local Health District in the latest reporting period.
