As the state government hails a small bar revival following a liquor licensing overhaul, new statistics show almost none of the city's bars are taking advantage of provisions that allow them to apply to trade past midnight and even as late as 5am.

In response to a review of its controversial lockout laws and complaints that Sydney's night life was dominated by beer barns, the state government overhauled liquor regulations last December to make small bars bigger and automatically allowing licence extensions past midnight to 2am.

Stitch Bar has taken advantage of the new licence. Credit:Christopher Pearce

But new figures from the liquor regulator show only a handful of the CBD and Kings Cross' 40 small bars now trade past midnight and none have been granted approval to open as late as 5am, for which current regulations now allow.

The state government says licensing changes including allowing venues to nearly double their maximum occupancy to 100 have grown the number of small bar licences.