Leading Melbourne's Australia Day parade was a "very emotional, huge honour" for members of the Mallacoota fire brigade who travelled from the fire-devastated far east of the state for the event.

Key points: Scott Morrison said persistence, passion, respect and struggle were part of Australia's story

Scott Morrison said persistence, passion, respect and struggle were part of Australia's story Tens of thousands of people cheered volunteer firefighters in Melbourne

Tens of thousands of people cheered volunteer firefighters in Melbourne Thousands more attended citizenship ceremonies

Australia Day celebrations and citizenship ceremonies were held across the country on Saturday, alongside 'Invasion Day' rallies.

The Mallacoota fire truck was at the head of the Melbourne procession, drawing cheers from tens of thousands of people along the route.

The bushfires have destroyed 123 homes in the Mallacoota area so far this fire season.

"[It was] very emotional, a huge honour, especially seeing the crowd, the appreciation that came from that and of course the smiles and waves we got from our bosses," Mallacoota fire brigade captain Rod Lewis said.

"For the first time ever I felt really proud.

"I felt like jumping out of the truck and saluting everybody."

Dean Shaw, Rod Lewis, Michael Johnston and Celia Wallace from the Mallacoota CFA were honoured to take part in the Melbourne Australia Day parade. ( ABC News: Yvette Gray )

The road to Mallacoota was temporarily reopened today to allow people to recover camping gear, cars, trailers, boats, and caravans

"That area is severely impacted, it is a disaster zone … and that's exactly why it has to be totally controlled by the police in regards to access in and out,'' Mr Lewis said.

"It's going to take a lot of recovery, time will probably cure everything but it's going to take a long time."

Thousands of people lined the streets of Melbourne. ( Supplied: Channel Seven )

PM acknowledges 'stories' old and new

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 2 minutes 11 seconds 2 m 11 s Scott Morrison's Australia Day address

Earlier in the day, Prime Minister Scott Morrison used his Australia Day address to say persistence, passion, respect and struggle were integral parts of Australia's story, along with drought, bushfires and adapting to challenges.

Mr Morrison said Australia Day was about acknowledging our country's stories, both ancient and from more recent times.

"The thing about all these stories is there is a theme: persistence, passion, respect, and struggle," he said.

"And, as we have been reminded especially in these most recent times, stories of drought, bushfires, adapting to the many challenges that come with living in this great continent.

"But we would have it no other way as Australians because we love this land, its beauty and, yes, we know its terror, in all of its riches and all of its blessings, and we are a free, diverse and accepting people."

Mr Morrison highlighted those who stepped up to help during the recent bushfires, including the thousands of volunteers, 3,000 reservists, community service and religious organisations, wildlife groups, young people, fundraisers and especially those who had lost their lives.

"So, yes, we've been reminded again — floods, fires, drought — but we are reminded in these things by Australia's story of overcoming the many challenges that come with living in this wonderful continent," he said.

He said Australians had much to be thankful for and still much more to strive for.

"[There is] nothing better than being an Australian," he said. "Happy Australia Day."

Invasion Day events

Thousands packed into Sydney's Hyde Park to protest against Australia Day. ( ABC News: Isabella Higgins )

While many celebrated Australia Day, a significant number of Australians who regard the day as the beginning of colonial oppression staged protest events.

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Tens of thousands of people gathered for Invasion Day rallies in the nation's capital cities including Sydney, where demonstrators congregated in a packed Hyde Park.

January 26 marks the anniversary of the First Fleet's arrival in Port Jackson, New South Wales.

Australia's heroes recognised

Around the country, hundreds of people were recognised through the Australia Day honours list for their contribution to the community on a local, state and national scale.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 4 minutes 47 seconds 4 m 47 s James Muecke is named Australian of the Year.

Eye surgeon James Muecke received the Australian of the Year award for his work preventing blindness.

During his acceptance speech at a ceremony in Canberra last night, Dr Muecke said he would use the next 12 months to draw attention to type 2 diabetes, which he said was a "looming catastrophe for our health system".

Bernie Shakeshaft was awarded the title of Australia's Local Hero in honour of his work with disadvantaged rural young people, top women's tennis player Ash Barty was honoured as the Young Australian of the Year, while WA obstetrics specialist John Newnham was named the Senior Australian of the Year.

New citizens welcomed

Across the country, 27,400 people from more than 160 countries become Australian citizens in more than 400 ceremonies.

On the shores of Canberra's Lake Burley Griffin, 29 people became citizens in a ceremony this morning.

Scott Morrison posed for a photo on the shores of Lake Burley Griffin with 29 of Australia's newest citizens. ( ABC News: Andrew Kennedy )

The event was attended by about 300 people, including Mr Morrison and Governor-General David Hurley, and began with a flag-raising ceremony and welcome to country ceremony.

The event was General Hurley's first Australia Day ceremony since taking up the role.

Maggie and Troy Fan were among 29 new Australians who received their citizenship from Mr Morrison.

But the couple had to rush back to Calvary John James Hospital's nursery to feed their 12-day-old twin daughters.

Maggie and Troy Fan, who became Australian citizens on Saturday, with their 12-day-old twin daughters Teresa and Tiffany at Canberra's Calvary John James Hospital. ( ABC News: Andrew Kennedy )

Teresa and Tiffany also became Australian citizens, along with their 14-month old brother Taylor.

Mr Fan said it had been an exciting day, which also happened to be his 30th birthday.

"We only ever see the Prime Minister on the TV, and the first time to shake hands with him is so exciting," he said.

"Australian education is the most top of the world, so that's why we chose Canberra to have our family."

Large lines of people waited patiently to register for the City of Wanneroo's citizenship ceremony. ( ABC News: Briana Shepherd )

For the seventh year in a row the City of Wanneroo, in Perth's north, held Australia's largest citizenship ceremony, with 950 people taking the oath of allegiance.

Mayor Tracey Roberts said the Australian passport represented a culture of inclusivity and mateship.

"We value the diversity and richness of experience that is evident throughout our city where 41 per cent of residents were born overseas and approximately 17 per cent of residents come from countries where English was not their first language," Ms Roberts said.

Traumatised communities come together

At fire-affected Bateman's Bay, the community held an Australia Day ceremony and breakfast.

Batemans Bay Rotary Club president Maureen Manning said all the local community groups were involved, including Rotary, Lions, St John's and the RFS.

"We are all pretty traumatised still," Ms Manning told the ABC this morning.

"Evacuations keep happening. People are going home and then all of a sudden they've go to go again, as you go down the coast.

"We thought it was important to do this today, just to get the community spirit going on. We normally would do this and a charge $5 fee for breakfast — that's for a bacon and egg roll, damper, coffee, tea, juice and a doughnut.

"This year we are doing it for free because we want everyone to come down, enjoy the festivities of the music and speakers and bands."

An Aboriginal smoking ceremony was held in Adelaide's Elder Park as part of Australia Day celebrations. ( ABC News: Patrick Martin )

In southern NSW's Batlow, where one man died and properties were lost, much of the town came together for breakfast this morning.

Apple farmer Greg Mouat, who is also a member of the local Rotary club, said the breakfast was part of the recovery process.

"We have been having this since about 1988," Mr Mouat said.

"There is … a larger crowd than we normally have and I think that's a result of the community wanting to come together and be part of this event."

He said the breakfast was free and the community had decided not to give away any awards.

"It's just been important that we have a relatively simple breakfast and let the community get together and communicate and talk to one another and enjoy their company," he said.