The Federal Government is threatening to revoke the City of Fremantle's power to hold citizenship ceremonies over its decision to move Australia Day celebrations to another day in a bid to create a more "culturally inclusive" celebration.

Earlier this year the council voted against the traditional fireworks display, in favour of hosting an event that has now been confirmed for January 28, two days after the public holiday.

West Australian Liberal MP Ben Morton flagged his concerns about the council's actions in a letter to the Assistant Minister for Immigration and Border Protection, Alex Hawke.

Today, Mr Hawke wrote to the Fremantle Council, urging it to reconsider or face the prospect of having its power to preside over citizenship ceremonies removed.

"The Government's position is very clear; if the council are unable to reconcile their political views with their civic duty, I will consider revoking authorisation from those persons in the City of Fremantle who can currently receive a pledge of commitment at citizenship ceremonies," Mr Hawke said in a statement.

"I note this has occurred twice in the last decade and the Government will be monitoring the situation closely.

"Fremantle Council has conducted Australian Citizenship ceremonies on Australia Day for the last five years, and the Government would strongly encourage this important tradition to continue."

Mr Morton, who is the Liberal Member for Tangney, said it was "a disgrace" to deny new citizens a ceremony on Australia Day.

"This politically correct, backward-looking approach from the council actually divides Australians and takes us further away from reconciliation," he said in a statement.

Fremantle sticks with plan

City of Fremantle Mayor Brad Pettit said he was not sure why council would need to reconsider its decision.

"I'm not sure on what basis we would [reconsider] because we've been liaising with the Department of Immigration as far back as October, and we've been advised that there is no requirement to provide citizenship ceremonies on the 26th of January," he said.

"We actually hold citizenship ceremonies on a range of dates throughout the year so I'm not sure on what basis we would be compelled to reconsider, but if there is evidence that suggests [a requirement] then we are certainly happy to look at it.

"I do think that it is really up to each local government to choose and we are choosing appropriately.

"I understand there may be some politics for them around this. We are actually really trying to keep the politics out of it and have a really great inclusive day."