Premier Gladys Berejiklian has admitted that some businesses could be left behind or even "go backwards" when New South Wales reopens to the vaccinated.
There are just two weeks to go until the state implements a raft of freedoms in the first stage of a three-step plan.
Those who are vaccinated will be able to take part in the relaxed restrictions while those who haven't had the jab will have to wait until December.
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Ms Berejiklian pointed to Byron Bay where vaccination rates among the population are lagging behind which could in turn affect businesses in the area.
"That's because some people choose not to get the vaccine and that's for them but they have to live with those consequences," Ms Berejiklian told Today.
"But it also impacts businesses, some might go backwards. At 70 per cent and 80 per cent not only do the patrons have to be vaccinated but so do your workers.
"So that could impact your business if you choose not to have vaccinated staff, well, that's on you.
"You won't be able to do anything until 1 December. Even then airlines have said they're not going to take people that aren't vaccinated."
Ms Berejiklian acknowledged the right of businesses to remain closed to those who choose not to get a vaccine.
"A lot of businesses have said they're not going to welcome people that aren't vaccinated," she said.
"Even though the government has said in our regulated environment, unvaccinated people will start forming part of society, a lot of private businesses have already said, 'Not for us, thank you' and unvaccinated people have to come to terms with that."
Ms Berejiklian also rejected suggestions that allowing unvaccinated people to enjoy freedoms from December 1 was coming "too soon".
"Quite the contrary. We've been very conservative because many reports say that at 80 per cent double-dosed you should consider opening up to the unvaccinated and we've said no."
Earlier, NSW Police Commissioner Mick Fuller said officers won't be checking on the vaccination status of people out and about from October 11.
https://omny.fm/shows/ben-fordham-full-show/top-cop-says-police-wont-go-checking-vaccination-p/embedSpeaking to 2GB's Ben Fordham this morning, Mr Fuller said: "The role of police in terms of vaccine passports, we will not be walking through restaurants, cafes and pubs checking if people are double vaccinated."
"(But) we will certainly be assisting restaurant owners and shop owners if they are refusing entry to someone - we'll certainly respond to assist those people.
"The role for police in terms of vaccination won't be stopping people and asking to see their vaccination passports."
He expects NSW Public Health orders to be in place by October 11. Mr Fuller said venues had the right to refuse entry to those not obeying dress codes, likening that to vaccines.
"We are anticipating there will be businesses who will be calling us for assistance on the right to refuse someone entry to their premises."
From October 11 - once the state has reached a full vaccination rate of 70 per cent - dining and retail will return and up to five people will be allowed inside homes.
Even greater freedoms will come in once 80 per cent of the population has had both doses, including travel around the state.
That is expected to begin from approximately October 25.
NSW will then move to a "third stage" of opening on December 1, around five weeks after the state hits its 80 per cent double dose target.
By then the government is hoping the double-dose vaccination rate will hit or surpass 90 per cent.
In this third stage, almost all restrictions will drop away and more freedoms will be offered to the unvaccinated.
Yesterday, NSW recorded 787 new cases of coronavirus - one of the lowest daily tallies in a month. A further 12 people lost their lives.
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The NSW Premier has suggested Queensland should "get ready, make sure your population is vaccinated" as two mystery coronavirus cases put the state on edge.
"Delta is insidious, it's so contagious," she said.
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"It's a challenging time for everybody. That's why I say to all the premiers, even if you hadn't cases or a lot of cases until this point in time, get ready, make sure your population is vaccinated, make sure you're thinking about a pathway through because unfortunately no matter how hard we try, there has to be a point in time we start opening up and Delta, unfortunately, will be part of our lives.
"It is just inevitable, unfortunately, that every state has to go through this. We're just saying, be prepared. Make sure your population is ready, because no matter how hard we work, it's really hard to keep the Delta strain out."
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