Almost one-third of new jobs qualifying for the Jobs Action Plan, introduced five years ago by Mr Baird when he was Treasurer, were in the City of Sydney, which added 40,395 jobs.

North Sydney (8416 new jobs) ranked second. Blacktown (4530) ranked third for adding new jobs under the scheme, beating Parramatta (4380), despite its reputation as the second CBD.

Businesses received a $5000 rebate on payroll tax for each extra staff member they hired, paid in two tranches on the first and second anniversary.

But there was a boom in Sydney city businesses registering for the rebate in the year to June 2016, with new jobs in the CBD doubling from 21,814 to 40,395. Payments to city businesses reached $118 million, according to the Office of State Revenue.

Government payments for the entire scheme tripled to $375 million in the same period.

But only $24 million was ever paid to small business.

The Labor MP for Maitland, Jenny Aitchison, said: "They were giving away money to people that were going to hire someone anyway. They talk small business but help big business."

Ms Aitchison, who runs a travel business, said the paperwork required to prove an employee had stayed in the same role for a year was too onerous for many small employers.

"You have to have economies of scale in your HR and payroll to be bothered to put an application in," she said.

Treasurer Gladys Berejiklian restricted the scheme in the June budget, so that only businesses with fewer than 50 staff now qualify for a $6000 rebate.

Ms Berejiklian said the NSW economy had experienced strong jobs growth since the 2015 election, and had already exceeded the election target of creating 150,000 jobs by the time of the 2016-17 budget.

"We felt that it was important to continue to support smaller to medium firms so that they can keep growing and adding staff," she said.

"For that reason, we have targeted the Jobs Action Plan to companies with 50 or fewer full-time equivalent staff."

Blacktown's acting Labor mayor Stephen Bali, who championed his community in the backlash against the SBS series Struggle Street, wasn't surprised that Blacktown outranked Parramatta for jobs growth.

"We are the best-kept secret in NSW. It's unfortunate the Premier doesn't seem to see western Sydney beyond Parramatta," he said.

The opening of the 256-hectare Sydney Business Park at Blacktown had seen an influx of companies setting up and hiring staff, including chocolate maker Lindt's first Australian chocolate factory, he said. There was also a "small but bubbling" pharmaceutical manufacturing sector emerging.

Blacktown state Labor MP John Robertson said the growing local employment opportunities at the Sydney Business Park were "absolutely important" in encouraging people to move into new housing estates, where prices were reaching $1 million for a home.