SHE started her career a media industry groundbreaker opening doors for other women, but it was a daughter's love for her father in the darkest hours of dementia that led Ita Buttrose to becoming Australian of the Year.

Her voice cracking with emotion, the Australian icon revealed it was her parents who first instilled a need to give back to the community.

Now, having spent decades forging a path for young female journalists, the 71-year-old will lay the foundations for a kinder journey to the end of life for Australia's ageing generation of baby boomers.

She outlined a set of new rules of courtesy she would like to see ageing Australians afforded, including "don't shout, they're not deaf necessarily, just frail."

Ms Buttrose also said elderly people were having decisions made for them without their consultation, people with dementia were stigmatised and that the frail shoud be respected.

Seemingly small things are big on her agenda, including the practice of herding the elderly into dining halls at 5.30pm "whether they want to or not" and the set menus of nursing homes which senior citizens are forced to "eat what's before them whether they want to or not."

Ms Buttrose was awarded Australian of the Year for her media career as well as her commitment to not-for-profit organisations, including as president of Alzheimers Australia.

She became emotional as she described having followed in her father's footsteps, whom she had helped care for as he battled dementia.

"He had vascular dementia, the second most common form," she said.

With her two children watching on, the industry giant was presented the award by Prime Minister Julia Gillard at a ceremony in front of Parliament House.

Ms Buttrose said eighteen months ago that Ms Gillard should show leadership and break her ties with the Greens and independents and call an election.

Yesterday, she said she had commended the PM on how well she was looking at a function at The Lodge and she said at the time of her comments all of Australia had been exasperated with the state of political affairs

She also set an agenda as a traditional Australian of the year - she wants the flag to stay as it is and believes Australia will be a constitutional monarchy while the Queen is alive.

Ms Buttrose was selected from an impressive field noted for their work in social justice, medical research and philanthropy that included fellow media identity and chair of Seven West Media Kerry Stokes.

Today show host and former magazine editor Lisa Wilkinson paid tribute to Ms Buttrose for paving the way for women like her to have successful media careers and opportunities outside the home.

In a ground-breaking media career, Ms Buttrose worked as editor at The Women's Weekly before she was appointed the first female editor of any Australian newspaper at The Daily Telegraph.

She was a driving force behind top-selling Cleo, along with Kerry Packer - a time which was last year depicted in the popular mini-series Paper Giants.

What's your take on the decision? Have your say at the Punch

The Senior Australian of the Year, palliative care leader Emeritus Professor Ian Maddocks, says more people should be allowed to spend their last days surrounded by love rather than medical machines.

The professor, who still spends his time caring for the terminally ill at age 82, said too many medical interventions were made in the last months of people's lives.

"If you look at how the health care budget is spent, so much of it is spent in those three few months of life when we try desperately to keep people alive in some way," he said.

"Sometimes I think it's better to step back and say you don't need all that procedural stuff, what you need is good care now.

"You are going to die. Let's do it well."

He said Australia's palliative care services were improving, but too many still missed out.

"Pain, anger, grief and despair can be assuaged and patience, courage and love increased (through palliative care)."

Professor Maddocks was one of three Australians honoured for helping society's most vulnerable.

Young Australian of the Year and Afghan refugee Akram Azimi, 25, is an indigenous mentor who takes his university colleagues bush to show children university could be in their futures.

In a moving speech, the West Australian said: "I thought I was doomed to forever experience the the poverty of not belonging."

But he said the kindness he experienced from Australians and the indigenous community had changed that.

Meanwhile, indigenous community leader Shane Phillips was named Australia's Local Hero.

The 48-year-old drives the Clean Slate Without Prejudice program in Sydney's Redfern, where young indigenous people and police train together.

It is credited with drastically lowering youth crime rates and empowering teens for positive futures.

He dedicated the award to those who had "written themselves off".

"Anything's possible. You are the answer and it starts with the simple things," he said.

The trio were selected from a impressive field that included Olympic hurdler Sally Pearson and singer Jessica Mauboy in the young category and champion swim coach Laurie Lawrence, who was nominated for Senior Australian for his work reducing childhood drownings.