The City of Fremantle has axed its Australia Day festivities in favour of a "culturally-inclusive alternative" celebration two days later.

The council voted in January to can its Australia Day fireworks display and replace it with a new event, the details of which have now been released.

In a statement, it said the new event, called One Day, was "an opportunity for all Australians to come together and celebrate the multicultural diversity of our country".

"Everyone should celebrate when they feel it is appropriate, however the City of Fremantle wanted to celebrate being Australian in a way that included all Australians and we believe moving away from this date was more culturally inclusive and more in line with Fremantle's values," it said.

Australia Day "may not have the same implication for all Australians", and the city wanted a "more inclusive" celebration.

Fremantle Mayor Brad Pettit denied the council was trying to be politically correct.

"Australia Day will still exist and people can still come down and there will still be things to do in Fremantle on Australia Day," he said.

"This is just offering another alternative event that celebrates the diversity of Australians and one that I know Aboriginal people in Fremantle are more comfortable with than January 26.

"There is no doubt that Aboriginal people in the Fremantle area overwhelmingly have supported this and for many of them Australia Day isn't actually a day that brings all Australians together.

"It's a day that has really mixed feelings and I think that's why as a council we are quite proud to have taken this step."

Council 'should not be playing black politics'

But prominent Aboriginal elder Robert Isaacs attacked the decision to cancel Australia Day celebrations.

Dr Isaacs, a former head of the Australia Day Council, says it a silly idea and the council is out of step with the majority of the community.

He said the council "should not be playing around with white politics and black politics".

"That's not in the spirit of the Australia way and to just listen to a small group of people and to change it from the 26th to the 28th doesn't stand up with me and it doesn't stand up with the community," he said.

"It [Australia Day] brings the community together, it brings the Australian people together and it celebrates the good this country has provided for everyone."

The free One Day celebration will feature musicians John Butler, Dan Sultan and Mama Kin, as well as arts and cultural activities.