Staff at Melbourne's Yarra City Council were given extraordinary orders not to utter the words 'Australia Day' when discussing the public holiday.

The 1000 employees - which included childcare workers, librarians and even gardeners - were forbidden to refer to it as 'Australia Day' and instead instructed to call it 'January 26 public holiday' when with customers and clients.

A bulletin posted by council chief executive Vijaya Vaidyanath gave explicit instructions to staff about how they should describe the controversial public holiday, the Herald Sun reports.

The 1000 employees were forbidden to refer to it as 'Australia Day' and were instead instructed to call it 'January 26 public holiday' when discussing it with customers and clients

A bulletin posted by council chief executive Vijaya Vaidyanath gave explicit instructions to staff about how they should describe the controversial public holiday (Stock image)

'Council made a resolution to change the way we mark our national day on January 26,' the bulletin read. 'This includes no longer referring to this date as Australia Day.'

'All staff are asked to use the words 'January 26 public holiday' rather than 'Australia Day public holiday' when notifying clients or customers of the opening hours of their service or centre on this day.'

The decision was slammed by Liberal MP Tim Smith who called council members hypocritical for choosing to enjoy the day off despite advocating so hard against Australia Day.

'This is utter hypocrisy from Yarra council, who spent so much time objecting to Australia Day only to take the day off,' Mr Smith said.

'Council made a resolution to change the way we mark our national day on January 26,' the bulletin read. 'This includes no longer referring to this date as Australia Day' (Yarra City Council website pictured)

The decision was slammed by Liberal MP Tim Smith who called council members hypocritical for choosing to enjoy the day off despite advocating so hard against Australia Day (stock image)

'Their thought police shouldn't be going around telling people what to think about our national day.'

The Yarra City Council offices were indeed closed on Australia Day, a revelation made public after 3AW Drive host Tom Elliott paid a visit to the building.

Mr Elliott knocked on the office door repeatedly, calling out and even attempting to ring an old door bell.

He tried to call the council but got an automated message explaining the council was closed.

Matthew Guy, the Leader of the Liberal Party in Victoria, announced he would move to sack all councils which threatened the national holiday if the Coalition is elected in November.

Yarra City Council voted last year to stop celebrating Australia Day, instead mourning it as the day the British invaded the Aboriginal land (Invasion Day rally pictured)

'It's time to stop bagging it. Australia Day is our national holiday and it's an opportunity for us all to come together,' Mr Guy said.

'That's why, if I'm elected, the state government will be able to sack councils that try to divide Australians by banning Australia Day.'

In August, the council voted unanimously to stop celebrating Australia Day on January 26 - with the controversial stand aimed at reducing 'distress' it causes to Indigenous people.

In its place Yarra City's nine councillors - of which four are Greens members - instead chose to hold a number of Indigenous-themed events, with the decision made in the wake of a recent survey of just 300 people which 'showed strong support' locally.