Every COVID-19 PCR testing clinic in NSW will close within weeks as the government looks to flood the state with its stockpile of rapid antigen tests.
Health Minister Ryan Park says demand for the free service has dwindled and the state's 165 testing clinics will close by May 13.
The move brings NSW into line with most other jurisdictions around the country, with just SA providing free PCR tests at public clinics.
Demand for the free service has reduced significantly since January, as health recommendations mean people are increasingly relying on rapid antigen tests (RATs).
Running the clinics in NSW cost about $11 million over one month this year, meaning the closures will save taxpayers up to $66 million.
"Millions of dollars every single month is being saved as a result of this," Mr Park said on Wednesday.
"I want to make sure that every single dollar that is given to NSW Health through me is spent effectively, properly and it's targeted where it's needed most."
Vulnerable groups still needing to do a PCR test, including those wanting antiviral medication, will require a referral from a GP before they can get a test at a private pathology clinic.
The process will be similar to when a patient requires a routine blood test and bulk billing doctors can be found through the government's Healthdirect website.
The health minister says the transition to a new model of testing will include the mass distribution of free RATs.
NSW Health will ensure RATs are available from local councils, Service NSW centres, local sports clubs, libraries and at the offices of state MPs.
"I want to essentially flood NSW with rapid antigen tests so that the availability is easy and accessible for everybody," Mr Park said.
The announcement did not signify the virus was not still circulating, he said.
Chief Health Officer Kerry Chant said the majority of people found RATs the most convenient option but advised people most at risk of severe COVID to get a PCR test.
"PCR testing requested by a medical or nurse practitioner will continue to be available at private pathology services with a referral form," Dr Chant said.