Leading youth mental health expert Professor Patrick McGorry has been named the Australian of the Year.

Prime Minister Kevin Rudd made the announcement this evening at a celebration in front of Parliament House in Canberra.

Professor McGorry, from Victoria, has been working to help mentally ill young people for nearly 30 years.

He says he is thrilled with the award.

"It's a tremendous honour and as I'm learning and feeling, it's a great responsibility I can foresee as well," he said.

"You obviously have the opportunity potentially to do some good, to try to make a difference."

Professor McGorry is the executive director of Orygen Youth Health (OYH) and a director of the National Youth Mental Health Foundation, which is also known as Headspace.

And he told the 7.30 Report that his award was a "coming of age of the mental health field".

Mr Rudd paid tribute to Professor McGorry's work and thanked him for raising awareness of youth mental illness in Australia.

"The incredible influence of his work, the number of young Australians and their families whose lives have been improved, and the value of his contribution to the nation cannot ever fully be measured," he said.

"With this award, we recognise that we have in Professor McGorry a leader whose drive, compassion and commitment to understanding and treating youth mental illness has helped shaped not only lives, but our national approach to mental health intervention, prevention and treatment.

"He is truly a worthy recipient and I congratulate him on being named Australian of the Year 2010 this evening."

Professor McGorry was a finalist for the honour alongside Jon Dee, Chris Sarra, Ralph Martins, Julian Burton, Bruce Englefield, Patricia Eastheal and Warwick Thornton, and replaces last year's winner, Indigenous campaigner Mick Dodson.

Young Australian of the Year

The first Australian soldier to be awarded a Victoria Cross in 40 years, Trooper Mark Donaldson, has been named the Young Australian of the Year.

The 30-year-old Western Australian was awarded Australia's highest military honour in 2009 after he drew enemy fire towards himself to protect wounded soldiers in Afghanistan.

"I'm just full of pride and honour to get this award," he said.

"General Australians have decided a solider is deserving of this honour and amongst the great people up on stage with me in that arena it was just amazing to be able to honour that as a soldier."

Trooper Donaldson says he also wants the award to recognise his fellow soldiers.

"I've been singled out for something, but every day they're fighting day in day out ... and that's why I want it to be a collective award as well," he said.

Trooper Donaldson was also praised for running 80 metres across exposed ground to rescue a wounded coalition force interpreter and carry him to safety.

"Training and instinct kicks in," he said.

"I wouldn't say fear doesn't come into it because it definitely does, but it's just a matter of getting on with the job.

"I joined up to be a soldier and I just wanted to give something back to the country."

The National Australia Day Council said his bravery "saved lives" and won him the "highest respect".

Trooper Donaldson replaces last year's Young Australian of the Year winner, victims support worker Jonty Bush.

Senior Australian of the Year

South Australian cook and restaurateur Maggie Beer was named Senior Australian of the Year.

The Australian culinary icon co-hosted ABC cooking program The Cook and the Chef, and hopes her love for food will inspire others to appreciate what they eat.

Ms Beer says she was overcome with emotion upon receiving the award.

"I'm so emotional I cried," she said.

"It gives me a platform to spread the things that I believe in, and that is that how much of a better food life is in everyone's grasp if we think about it and share our knowledge with those who don't have knowledge

"But it's more than just the food, it's the sharing, getting them to think about growing their own. It's that whole sum of the parts.

"It is about enriching and cherishing knowledge and finding out from all our multicultural neighbours and finding out about their food.

"Everyone should be empowered to cook and look after themselves and have joy and have fun."

Ms Beer described her perfect Australia Day meal, saying it would be eaten down at the beach.

"Blue swimmer crabs straight from the pot having caught them ourselves and some beautiful fresh ciabatta bread - simple food to suit the climate," she said.

Australia's Local Hero

And NSW food rescuer Ronni Kahn was named Australia's Local Hero for collecting surplus food from restaurants, cafes and events and delivering it to charities as part of her organisation OzHarvest.

Ms Kahn says since OzHarvest started, it has delivered 4,698,000 meals from food that would otherwise have gone to waste

"I feel truly honoured and so privileged," she said.

"I feel that I will be a role model, I will do my best - one, for Australia... and two, to make a difference to the world.

"That's my job and I urge each and every one of you to do the most you can to give back to this extraordinary country

More than 2,500 nominations were received from the public for the 2010 awards and nominations are already being accepted for the 2011 Australian of the Year.

"For the past 50 years, the Australian of the Year Awards program has honoured those among us who inspire us and do us proud as a nation," Mr Rudd said.

"This year I am again awed by the achievements and contributions of the award recipients, who demonstrate that greatness comes in many forms and all Australians have the potential for greatness within us."