MAGAZINE queen Ita Buttrose has been named Australian of the Year.

In addition to her legendary media career, Buttrose has been acknowledged for her efforts in championing medical education and health care.

Since 2011 she's been National President of Alzheimer’s Australia and Vice President Emeritus of Arthritis Australia.

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The media icon uses her national profile to raise awareness of breast cancer, HIV/AIDS and prostate cancer.

Buttrose said more citizens are seeing Australia Day as an occasion to reflect on what it means to be an Aussie.

''In this day and age, it's become a day when a lot of us reflect more than we once did on what it does mean to be Australian, what we get from our country and what we can do to give back to it,'' she told reporters at the official finalists lunch.

''I personally think it's a day when you should always cherish the freedom we have in this country, the freedom to speak and the freedom to move around freely.''

A large crowd has gathered in the forecourt of Parliament House in Canberra for the annual awards.

Emeritus Professor Ian Maddocks has been awarded Senior Australian of the Year.

Based at Flinders University in Adelaide, Professor Maddocks is recognised internationally for his work in palliative care, tropical and preventative medicine.

He is also a passionate advocate for world peace, working with medical groups since 1982 calling for a ban on nuclear weapons.

''I see palliative care as just good medicine,'' the 81-year-old said in a video address after the award was announced.

''I find it is very important to be with the patient, I hold a lot of hands I'm afraid.''

In his acceptance speech, Professor Maddocks highlighted the need for greater emphasis on palliative care.

''We shall all die, some of us will deny the approach of death, some of us will approach difficult treatment and then be told there is nothing that can be done,'' he said.

''In palliative care there is always something that can be done.''

Akram Azimi has been named Junior Australian of the Year for his work as a mentor to indigenous youth.

Arriving in Australia 13 years ago from Afghanistan, he's now studying a triple major in law, science and arts at the University of Western Australia.

Intent on giving back to his adopted country, Mr Azimi uses his leadership and pastoral skills to help young people in remote and rural Western Australia.

''I'd like to thank all those Australian families who believed in me and stuck with me for so long,'' he said in accepting his award.

''This award is for you''.

Australia's Local Hero of 2013 is Aboriginal rights advocate Shane Phillips.

Mr Phillips is a respected member of the Redfern Aboriginal community and is regarded as their voice on various issues ranging from juvenile justice to Aboriginal deaths in custody.

He also operates a mentoring program to help Aboriginal and Torres Strait Islander young people to achieve their full potential.

''I'm a real Redfern boy,'' he said in a video presentation after the award was announced.

The number of robberies by local youth in Redfern has dropped by 80 per cent since 2009, following the introduction of a program, called Clean Slate Without Prejudice, run in collaboration with police.

''It has helped each side under stand and appreciate the other,'' he said

Mr Phillips said he would share the award with his community.

''It's a community at work,'' he said.

''We're not being reactive, we're being proactive.

''This goes out to a lot of kids, and our elders, who have written themselves off or have been written off.

''Anything's possible! You are the answer.''

Earlier Olympians, media icons, moguls, and local heroes bonded over traditional Australia Day fare at The Lodge - where the PM's dog stole the show.

Prime Minister Julia Gillard, first bloke Tim Mathieson and their Cavoodle, Reuben, hosted a tea for Australian of the Year finalists ahead of the announcement of the winners.



Reuben stole the show, with Ms Gillard commenting he was relishing his "star turn" with the crowd.

Reuben, the dog causing mayhem at The Lodge



Those gathered represented the diversity of Australian society, Ms Gillard told the group in Canberra.



"People who have made contributions and people who have been honoured for those contributions by their communities," she said.



"People that their fellow Australians wanted to put forward to be acknowledged."

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From indigenous finalists to those who had chosen Australia as their home, all had made a difference to the nation, going the extra yard to improve people's lives.



"We're talking about people who have had distinguished careers and point to a lifetime of achievement and people whose lifetime of achievement still lies in front of them," the prime minister said.



The star-studded crowd sipped tea and ate lamingtons, jelly cakes, Australian themed mini-meringues and cheese and ham sandwiches under a marquee at The Lodge in the hot January sun.

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Then came the toilet joke.



National Australia Day Council chairman Adam Gilchrist told how his excited daughter, Annie, spotted Young Australian of the Year finalist Sally Pearson at a Melbourne sporting award.



"Annie at a black tie function down in Melbourne, 1000 people, came racing across the ballroom screaming 'Dad, Dad, Sally Pearson's in the toilet'," he said.



The cricket legend said Pearson probably wasn't thrilled by the announcement, but graciously met his daughter and posed for a photo.



"That is indelibly marked in my daughter's mind, that's inspiration, one example of which there are 34, wonderful examples (here)," he said.



The Australian of the Year awards will be announced in Canberra from 6pm (AEDT) on Friday.



There was a lot of celebrity firepower in the room - such as Kerry Stokes and Ita Buttrose.

Businessman Kerry Stokes said being nominated for Australian of the Year was one of his proudest moments, a surprise and a great honour.

Mr Stokes, who has long supported the Australian War Memorial through purchasing important artifacts such as Victoria Cross medals, is representing Western Australia.



"I love the war memorial,'' he said.



"The war memorial is part of our Australian psyche. It represents all those great things that mean to be Australian.



"People remember the First World War but one of the things we tend to forget is that that was the beginning of volunteering.



"That was when Australia started this great culture of volunteering for what were difficult jobs. Today we have the same culture still surviving."



South Australian Sonya Ryan, who has campaigned for internet safety after her daughter Carly died at the hands of an online predator, said being nominated was an amazing experience.



"For me it is recognising (Carly's) legacy and being able to share through the tragedy that happened to her," she said.



"It has been really difficult from the beginning but my focus has been on making a difference and trying to prevent crime against children.



"It has to be my focus. If I stayed in a place where I was thinking about what actually happened to my daughter, I wouldn't be able to do the job I am doing."



ACT nominee Tom Calma, a race discrimination commissioner, said Australia Day had a different meaning for different people.



"It's contentious for a lot of people and you do get, across the spectrum, some non-indigenous people who get offended and want to change Australia Day,'' Dr Calma said.



"You get Aboriginal and Torres Strait Islander people in that same position.



"But it is a day we all celebrate and it has different meanings for different people."



Olympian Sally Pearson, Young Australian of the Year finalist for Queensland, said she was used to mingling with athletes and it was nice to meet people from different walks of life.



"It opens your world and opens your eyes a bit more to how many amazing young Australians are doing so much good for their community and the world."