The Australian live music industry is struggling against streaming services that favour American tunes, and the local scene in NSW has taken a hit over the years since the pandemic and lockout laws.

NSW Premier Chris Minns said that giving Aussie artists their first big break in front of thousands of locals will help them get high rotation on playlists.

"The Hoodoo Gurus got their first big break after they performed with Lou Reed in 1984," Mr Minns said.

Mr Minns dedicated the incentive to the late Michael McMartin, who managed the Hoodoo Gurus and was passionate about pushing Aussie talent to be included on the stadium tours.

"We want more Australian musicians to have that opportunity, performing on the biggest stages in NSW alongside the best international artists," Mr Minns said.

Venues covered include Accor Stadium, Allianz Stadium, CommBank Stadium, McDonald Jones Stadium, Newcastle Entertainment Centre, the Sydney Cricket Ground, WIN Stadium and Entertainment Centre and the Sydney Opera House.

Under the plan, the NSW Government will reduce the venue hire fee by $20,000 for each eligible show across various NSW venues and will offer a $5,000 reduction at the Sydney Opera House.

To be eligible for the incentive, at least one Australian artist must be included as a support act on an international artist's headline tour.

The measure kicks off Monday and spans an initial two years.

With AAP.