You are discussing the NSW Minister for the Arts, Don Harwin, I assume? He was issued a $1000 fine after community pressure. I don't live in NSW but media suggests the messages up there were unambiguous. so if true, it's poor he did that. Once the 'big' people ignore these rules, the 'little' people ask 'why should we observe these restrictions?'
In Victoria, the Premier Daniel Andrews has given confusing messages re travelling to holiday homes, which he's said was 'OK' at least a couple of times, but his Chief Health Officer has said 'essential travel only' or that's what the rules imply. So my neighbours and many others have gone to Lorne, Phillip Island and so on to find "the locals" don't want them there.
You're probably correct about 'hospital cost shifting' onto the Commonwealth, a practice that's been occurring for years. In Victoria, public hospitals have staff who go round enquiring of patients 'do you have private health cover?' so that the funds then have to pay the daily costs not the State Govt.