Following updated health advice, NSW residents returning from Victoria must go into mandatory hotel quarantine for 14 days at their own expense.
This regime, designed to protect the wider NSW community from the escalating COVID-19 situation in Victoria, will come into effect at 12.01am this Friday.
All returning NSW residents, unless they live within the NSW border regions, will only be allowed to return to NSW through Sydney Airport.
Premier Gladys Berejiklian said this new line of defence would further reduce the risk during this critical time in the pandemic.
"I realise this may be difficult for some people, but the changing situation in Victoria means we must exercise extreme caution," Ms Berejiklian said.
"The health of our citizens and economy must be protected - and the health advice says this is the best way to do it.
"We will also further limit the reasons Victorians can seek exemptions to come into NSW."
There is no change to existing arrangements for border communities.
Health Minister Brad Hazzard said a robust health screening process will continue at the airport to protect the NSW community.
"NSW Health staff will continue to rigorously screen incoming passengers from Victoria, doing health and temperature checks, ensuring masks are worn and checking their permits," Mr Hazzard said.
"Our staff will also continue to ensure that anyone who is unwell or showing symptoms is shuttled safely to our quarantine health hotels for care under isolation."
Dr Kerry Chant said this latest change would reduce the number of people entering NSW from Victoria, and reduce the risk of community transmission.
"This is a critical time in the NSW response and we need to reduce any further risk of seeding of cases from Victoria," Dr Chant said.
The cost of hotel quarantine will be the same as for returning international travellers.