This was prompted due to a back complaint on the outstanding sprinter.
"We are devastated," McCarthy said.
"Narelle (McCarthy, John's wife) and I were looking forward to Johnny having his shot at winning three straight Miracle Miles, which would have given him a unique piece of history.
"Unfortunately this back complaint has come up at the worst time and we simply don't have enough time to get him to Sydney at 100 percent fit.
"Last year, we were robbed of the opportunity to win three straight Miracle Miles due to EI, and now, a year later, this has occurred."
Be Good Johnny's withdrawal means the selection pressure has been eased on the Directors of the NSWHRC, with a handful of horses still in contention vying for just two spots.
Now, three invitations are up for grabs.


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