A payment of $320 is available to eligible workers in Sydney's 17 "local government areas of concern" when they forgo income to get tested for the virus and isolate until they receive their results.

Unions NSW Secretary Mark Morey said the link between economic security and public health outcomes was "undeniable".

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"When workers face a financial penalty to test and isolate or to get vaccinated for that matter, it gives the virus more chance to spread," he said.

"Casual, contract workers and sole traders should not have to choose between feeding their family and getting tested for COVID.

"We need to remove every barrier to getting tested or vaccinated."

Mr Morey said isolation was a "relatively light burden" for people with permanent and secure jobs who could work from home.

"But if you are in a manual or service sector job, without leave rights, it's a much greater impost," he said.

"You have to sacrifice pay, possibly for several days."

Mr Morey has praised the more than 68,000 people in Western NSW who have turned out for testing in the past month.

They have been magnificent, " he said.

"We must encourage their sacrifice by making it as easy as possible for them to do the right thing."

State Member for the Dubbo electorate Dugald Saunders has committed to consulting with local business groups to determine if "it's worth having Dubbo declared a COVID-19 hotspot".

"We've got to get the balance right who it will benefit, and who it will discriminate against," he said.

" 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."

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