It's one of the most iconic New Year's Eve celebrations anywhere in the world - but according to thousands of outraged Australians, they shouldn't go ahead this year.

By Saturday evening, more than 22,000 people had signed the change.org petition that demands the money for Sydney Harbour's fireworks be allocated to drought-affected farmers and bushfire victims.

In the video above: Fireworks during fire ban

"With Australia facing drought and now catastrophic fires, decimating towns as it tears across our country, the thought of spending MILLIONS of dollars on a firework display when it could be used to support and rebuild our country instead is infuriating," the petition states.

"It's times like these when we as a nation need to look at our priorities and I believe the new year should be welcomed in the Aussie way; by giving our fellow Australians a helping hand."

More than one billion people around the world watched Sydney's display in 2019. Credit: BRENDAN ESPOSITO / AAPIMAGE

A record-breaking $5.8 million was spent on the 2019 display that featured 1000 lightning effects on the bridge and a further 800 fireworks shot from its sails.

With a global audience of one billion people and tens of thousands of people competing for the best view around the harbour, organisers say the festivities add an estimated $133 million to the local economy.

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A second petition has asked Lord Mayor of Sydney Clover Moore to not cancel the display but rather donate a percentage of the fireworks profits to bushfire victims.

'Shockingly bad taste'

The petition comes just days after a fireworks display on Sydney Harbour was given the axe after an earlier event was deemed to be in "shockingly bad taste" given parts of the state are still battling unprecedented bushfires.

A display for a corporate event had been due to take place on Thursday evening on the harbour.

Revelers compete for the best view. Credit: BRENDAN ESPOSITO / AAPIMAGE

But it did not go ahead after Transport for NSW temporarily banned on-water fireworks while a week-long state of emergency remains in place.

People on Twitter criticised a display on Wednesday which came just 24 hours after parts of the state faced "catastrophic" fire danger and as dozens of blazes continued to rage.

Chevron Right Icon 'Wrong on every level'

The fireworks were described as being in "shockingly bad taste" and "wrong on every level".

The NSW bushfires have claimed the lives of four people since Friday and damaged or destroyed more than 400 homes.

Andrew Howard, director of Howard and Sons Pyrotechnics, said it wasn't his call to proceed with Wednesday's event.

"It wasn't my decision to proceed. I was contracted to provide the services for the event," he told AAP.

Last year's display added $130 million to the economy. Credit: BRENDAN ESPOSITO / AAPIMAGE

Mr Howard said he would not have gone ahead with the display if it was up to him, knowing the "effect on the entire community" the bushfires had.

"It certainly could've been (deemed insensitive) to people who feel that it was. I totally respect their position on it," he said.

But he reiterated Wednesday's pyrotechnics were lawful, having been granted an exemption from the total fire ban.

Rural Fire Service NSW deputy commissioner Rob Rogers defended Wednesday's eight-minute display saying it had been declared safe by authorities.

Transport for NSW said the granting of licences for on-water fireworks displays will be reviewed again on Monday.