Venues that offer live music or entertainment across the state could stay open later than their regular hours, under a licensing scheme being pushed by the Labor opposition.

After Premier Mike Baird this week said he would partially relax the lockout laws applying to the inner Sydney, Labor leader Luke Foley said more needed to be done to encourage music and performance outside the lockout zones.

To that end, the Opposition is proposing a new class of liquor licence that allows venues to remain open past their regular hours, provided there was live music or other performances on the premises.

"There's a direct linkage: you encourage live performance, and longer licensing hours can flow from an increased focus on live performance," said Mr Foley.