New South Wales reported 30 new locally acquired cases of COVID-19 on Sunday, leading to other Australian states closing their borders to Sydney and other parts of the state.
Australia won the first Test against India by eight wickets on Saturday, and the third game of the series is not due to begin at the SCG until January 7.
CA is still planning for the Test to go ahead as scheduled in Sydney, but it is assessing the situation.
"The third Vodafone Test is more than two and a half weeks away, which provides us with time to assess the evolving public health situation on the northern beaches of Sydney," CA interim chief executive Nick Hockley said in a statement.
"We have made no changes to our schedule and our preference remains to play the match at the Sydney Cricket Ground.
"Cricket Australia has developed a solid track record of delivery throughout this most challenging of summers and will continue to make appropriate and proportionate decisions in consultation with our biosecurity team, governments, state and territory associations, the Australian Cricketers' Association, our partners and venues.
"CA has prepared for the possibility of COVID-19 hotspots and state border closures over the course of the summer and the protocols that we have put in place have been effective in ensuring the safety and success of the men's and women's domestic and international programs to date.
"It was less than a month ago that South Australians were contending with an outbreak of the virus in Adelaide and we have just completed a brilliant first Vodafone Test at the Adelaide Oval. We faced similar issues in relation to the Melbourne Cricket Ground playing host to the Boxing Day Test and we are now less than a week away from welcoming back Victorian crowds after a difficult year for the state.
"We will continue to work closely with all relevant parties to make the right decisions in the appropriate timeframes."
The second Test of the series between Australia and India is due to begin at the MCG on Boxing Day.