The member for Dubbo Dugald Saunders is meeting with local business groups to determine if it's worth having Dubbo declared a COVID-19 hot spot.
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Mr Saunders told media at the Wednesday COVID update that the city should be considered, but has since learned of wider ramifications such as the impact on trades and other businesses.
"We've got to get the balance right who it will benefit, and who it will discriminate against. The good is that it could bring into play support like that test and isolate payment...the bad is that it could affect businesses in the way it has in Sydney."
Mr Saunders said this could have a massive impact on businesses currently able to visit homes, such as tradies working on home renovations and installations, to name one example.
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"I'll get some advice from the Chamber of Commerce this morning, it's important that we do this on a local level, I will be providing that advice to the Deputy Premier."
Mr Saunders also told the Daily Liberal that the criteria for the test and isolate payments are very specific.
The NSW Health website lists eligibility criteria including that you mustn't be able to work from home, have access to sick leave, carers leave, or any other special pandemic leave, or receive any financial support from the Federal or State governments.
Testing numbers in Dubbo have been high, with residents answering the call to get a COVID test if they have been to any of the venues of concern on the dates listed by NSW Health, and if they experience even mild symptoms.
On Tuesday there were 10,000 swabs done across Western NSW, with almost 5,000 of those done in Dubbo.
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