The government says it will not be able to keep the blanket of protection in place for long.
It says the cost of covering everyone who is at risk of getting the pandemic is $4.8bn over three years.
The cost of providing the blanket has risen from $1bn to $1.4bn, with the rest of the costs going to the states.
The Government has also been asked to make a further $600m available for hospitals and public sector workers to cover the costs of blanket fort programmes.
The National Health Service will also have to take on the costs.
The blanket fort programme has already started and it is estimated the number of new cases in NSW will be about 70,000.
The NSW Government says the blanket will cover 1.6 million Australians by the end of the pandemics.
“I don’t think it is right for anyone to get a blanket of blanket immunity and be prepared to risk their life and limb for the protection of others,” Mr Newman said.
Mr Newman said the Government was also trying to put together a package of measures to protect people from the virus and to try and prevent it spreading, which could involve the introduction of more vaccines and testing to ensure people are safe.
He said the blanket could be available to Australians in the next 12 months.