In 1988 all states and territories agreed to hold Australia Day on January 26 and only in 1994 the day became a national public holiday.
The National Australia Day Council oversees the celebrations and awards.
Contemporary Australia Day is celebrated differently across the nation.
Council CEO Chris Kirby says many Australians choose to spend the day with family and friends or by attending events.
"Our national day is not like the days that occur in other countries. Its really relaxed its very much what people can make of it what they want. They range from aboriginal festivals in Coffs Harbour to huge multicultural parades down the centre of the Melbournes CBD to crazy Aussie outback events like thong throwing or cane toad racing so theres a whole range of diff events that happen on the day," he said.
Citizenship ceremonies are also held on Australia Day where new citizens make their Australian Citizenship Pledge.
Chris Kirby says they celebrate our multiculturalism.
On Australia Day eve, the Prime Minister awards outstanding citizens who have made a significant contribution to the community and country.
However January 26 for many First Nations people represents Invasion Day or Survival Day, marking the start of British colonisation.
Dr Chelsea Bond is a Munanjahli and South Sea Islander Australian who lectures at the Aboriginal and Torres Strait Islander Studies Unit of Queensland University.
She says many Indigenous Australians dont celebrate on January 26.
"The fact that it is insisted that we celebrate a day which at worse has been a day of mourning for Indigenous people and at best, celebration of our survival in a world that was intent on destroying our way of life. I think that surely as a nation, there is a better day, a more inclusive day, where we all get to celebrate being a part of this nation," she said.
In a bold move to include Indigenous Australians, the City of Fremantle recently sparked controversy by replacing their Australia Day festivities with a new event called One Day on January 28.
The council website states this decision came about in order to celebrate being Australian in a way that included all Australians.
Dr Chelsea Bond believes nationwide Australia Day festivities should also take place on another date.
"The failure to change the date thus far despite the calls by Indigenous people and many other Australians to change the date I think that speaks to the relationship of the power between Indigenous and non-Indigenous people. It speaks to the position of Indigenous peoples in this country. It tells us where we sit in this nations consciousness where somethings still not talked about, where the history that Indigenous Australians have experienced in this country is still something this country prefers to keep quiet about," she said.
