Asylum seekers in New South Wales will receive travel concessions, Premier Mike Baird has announced on social media.

New South Wales Premier Mike Baird has used social media to announce that the State Government will give travel concessions to asylum seekers.

From January 1 next year, eligible asylum seekers will be able to claim the equivalent of gold pension concession cards, which will allow them to travel all day across the transport network for the capped price of $2.50.

In a video posted on Twitter, Mr Baird said New South Wales has the strongest budget in the country so it has an obligation to look after its most vulnerable residents.

"They arrive here with nothing, looking to get on their feet, escaping conditions and circumstances none of us can imagine and we are very proud to provide some support at the time they need it most," Mr Baird said.

"[It's] a small announcement in terms of dollars but a big announcement in terms of impact to those who need it most."

Mr Baird described the concessions as the "most generous of any state in the nation".

Asylum seekers will be eligible if they hold a bridging visa or are applying for one, and if they are receiving aid from a designated agency.

The Federal Government welcomed the move and denied it was at odds with its own approach on the issue.

Social Services Minister Scott Morrison rejected suggestions Mr Baird's stance was in contrast to the Federal Government's rhetoric about asylum seekers.

"We're working through the legacy caseload of people that the previous government's border failures forced us into having to deal with," he said.

"The Premier's taken up the responsibilities that they have and the Government at a national level, at a federal level, continues to take up its responsibilities there."