NSW Treasurer Dominic Perrottet announced the funding as part of a government push to stimulate the economy and boost jobs in the CBD.

The treasurer hosted a second Sydney CBD Summit of business, community, government and industry leaders at the Museum of Contemporary Art on Thursday.

"We need to continue to drive growth in Australia's global city as we emerge from the pandemic," he said.

"We want more people back in the city, whether that's working or shopping or coming in for entertainment and dining."

The new funding brings the total CBD revitalisation investment to more than $40 million, including $5 million from the City of Sydney.

After the first summit the government announced increased public transport, flexible outdoor dining arrangements as well as a voucher program to encourage people to dine out, return to entertainment venues and book overnight stays at hotels.

However, Small Business Minister Damien Tudehope said commercial occupancy rates in Sydney's CBD remained at just 50 per cent due to continued flexible work arrangements, well down from the pre-pandemic rate of about 90 per cent.

"When people return to the office, they support small businesses and local jobs by buying lunch, shopping in store rather than online, and going out to visit cultural institutions as they stay open after dark," Mr Tudehope said.

Tourism and Jobs Minster Stuart Ayres said the CBD remained impacted by the halt on international travel, which supported businesses and jobs.

"International travellers to Sydney contributed more than $1 billion to the economy over the summer of 2020 and the city is still grappling with that loss, despite improvements on the domestic tourism front," he said.

"The CBD needs to mature from being a place we go to work into a 24-hour destination with a diverse range of experiences."

Australian Associated Press