Revellers hoping to party at Bluesfest in Byron Bay over the Easter weekend have been left heartbroken as the event is called off due to a spike in Covid-19 cases.

The shock announcement, which came just hours before 15,500 Australians were set to flood the gates on Thursday, marked the second consecutive year the carnival was canned amid fears of a mass outbreak.

New South Wales recorded one coronavirus case overnight on Wednesday after an infected nurse working in Brisbane attended a hen's party in Byron Bay over the weekend.

Organisers issued a statement that evening telling warning patrons not to go to the festival site at Tyagarah Tea Tree Farm on Thursday morning, but tried to keep spirits up by vowing to relocate the event rather than cancelling it completely.

Haunting photos of the grounds show a deserted pavilions and stages where festival-goers hoped to watch live performances by Jimmy Barnes, Tash Sultana, John Butler and Pete Murray.

Thousands of empty chairs line mosh pit areas, while stacks of seats that toppled over in the wind lay abandoned amid a sea of expensive sound and lighting equipment.

Redundant signage that was hammered into the ground to help campers navigate their way around the 120-hectare property are still firmly dotted around the abandoned scene.

White tee-pees, which festival-goers paid an extra $1000 to use for the full five days on top of the $600 entry price, stand empty in carefully curated formations.

Australian music icon Jimmy Barnes released a statement on Facebook on Wednesday night saying the cancellation was a 'huge blow for Aussie music'.

'Not just the artists, but all the roadies, stage crew, volunteers, the punters, and everyone in between, we have to remember that the health and well-being of this country has to come first,' he wrote.

'Thanks to the team at Bluesfest for doing the best they could in preparation.'

Blues singer-songwriter Ash Grunwald, who was scheduled to play with his band on Thursday and Friday, wrote on social media 'we are so gutted about @bluesfestbyronbay our rehearsal was sounding rad'.

He told The Australian the festival was a 'massive' part of his career when he was starting out as a musician.

'Maybe even the biggest festival for me. It did make my career in large part, getting to play my style of music to a massive audience.'

Sydney-based visual artist Helena, who travelled to Byron Bay on Wednesday afternoon for the carnival with her husband and two friends, told Daily Mail Australia the cancellation was a 'blow for everyone'.

‘Got the news a few hours in to driving up to Byron - took some last minute planning but we were lucky enough to be able to change our plans to just a camping holiday somewhere else,' she said.

'I think it was the right thing to do but such a blow for everyone involved in the festival, if there was a worst case scenario they must have imagined, this would have been it.’

Other Bluesfest hopefuls took to Facebook to vent their frustrations, but many said they understood why the decision was made to shut the event down.

'Heartbroken for all involved but the right decision. So many people love you Bluesfest and we will be there when things are safer for everyone,' one woman wrote.

Another said: 'Feel for all concerned. So many music lovers, musicians, volunteers and staff affected. Tough thing for a promoter to deal with. Thank you for having the kahunas to mount the gig, and graciously move forward in the best interest of public health.'

'Oh no! Feel for you all. So bloody close it's devastating for everyone particularly all the wonderful artists and organisers,' someone else shared.

NSW Health Minister Brad Hazzard confirmed the news on Wednesday afternoon acknowledging it was 'disappointing' but in the best interests of the state.

'Infectious Queensland travellers attended a number of venues in the Byron Bay area and the new locally acquired case was infected at one of these venues,' a statement released by Mr Hazzard said.

'NSW Health acknowledges that the cancellation of Bluesfest is disappointing for ticket holders and event organisers.

'However while urgent investigations and contact tracing are ongoing, NSW Health is adopting a cautious approach to keep everyone safe.'

Following Mr Hazzard's announcement, Bluesfest director Peter Noble said announcing that the festival would be scrapped was 'one of the most difficult statements I have ever had to make'.

'We really wanted to be at the forefront of the return to live music at pre-Covid-19 level.'

'We feel deeply for everybody affected - the fans, the artists and the hard-working Bluesfest team. But in the end, the health of our community must come first.'

The northern NSW man aged in his 20s tested positive on Tuesday night after sitting within close proximity to an infected hen's party from Queensland at the Byron Beach Hotel last Friday. He is now in isolation.

Premier Gladys Berejiklian has announced new rules for the far northern NSW holiday hotspot and the surrounding Ballina, Tweed and Lismore local government areas, which come into effect 5pm Wednesday and continue over the Easter long weekend until midnight April 5.

Gatherings in homes, including holiday rental properties have been restricted to a maximum 30 people in the four northern NSW local government areas.

Public indoor settings including hospitality venues must revert back to the one person per four square metre rule while the wearing of masks in shops, public transport and taxis will be mandatory.

More venues in Byron Bay have also been added to NSW Health's COVID-19 exposure site list, including a burger bar, surf shop and women's clothes store.

Two Ballina venues have also been added after the NSW case attended a tavern and golf course while unknowingly infectious on Sunday March 28.

Anyone who attended the Henry Rous Tavern on Sunday between 1.20pm- 2.20pm or the ?Ballina Golf and Sports Club pro shop 2:25pm-2:35pm must immediately get tested and self-isolate until further advice is provided by NSW Health.

NSW Health has adopted a cautious approach to minimise the risk of further transmission.

'We want you to limit the number of people that come to your home to 30 and, as we know, during this time of year, there may be house parties or other events,' Ms Berejiklian said on Wednesday.

'We want all of those limited to 30 and please make sure you have a list of everyone who attended or is attending your home.'

Greater Brisbane residents were ordered into a snap three-day lockdown on Monday afternoon, which was set to end on Thursday.

But a seemingly insignificant paragraph on the Queensland Health website appears to indicate the lockdown will last an extra five days.

'Testing and respiratory clinics will not require a GP referral for the duration of the greater Brisbane lockdown- 5pm AEST Monday 29 March to 11:59pm AEST Tuesday 6 April,' the website read.

The sentence had been changed some time on Wednesday night, as it previously correctly stated the lockdown period would end at on Thursday at 5pm.

Gold Coast Primary Health Network chair Doctor Roger Halliwell warned if more cases are recorded overnight, Easter celebrations could be off the cards for Brisbane residents.

'It's a balancing act between shutting things down to allow for contact tracing versus heading into a holiday weekend that most people want, and quite frankly need, right now,' he told the Gold Coast Bulletin.

'The reality is, the risk is quite high (of community transmission), but with a collective challenge to throw everything we can at it; by getting tested, wearing masks, staying home if you're not well and social distancing, we may be okay.'

Fears of a prolonged lockdown come despite just two new coronavirus cases emerging in the community on Wednesday out of 33,408 tests.

The two new cases in Queensland take the total number of community infections to 17, along with two Covid patients who initially spread the virus to hospital workers.

Premier Annastacia Palaszczuk said a decision on extending the Greater Brisbane lockdown would be made at 9am on Thursday.

It is estimated that Covid restrictions will cost the tourism sector about $1.7billion over the Easter period, which equates to a daily loss of about $302million.