New South Wales (NSW) State Premier Gladys Berejiklian announced the stricter curbs – affecting about five million people who live and work in the city – on Wednesday.
“Clearly this is an evolving situation,” Berejiklian said at a news conference.
The new rules took effect at 4pm Sydney time (06:00 GMT) and will remain in force for a week.
“Given what has occurred the NSW government will be taking action today to limit the spread of what is a very contagious variant of COVID.”
NSW health minister Brad Hazzard described the situation as “a very real and present danger” for the city as a cluster first identified in the beach surburb of Bondi grew to 21 cases with eight confirmed on Wednesday morning.
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