Philanthropist and mining magnate Andrew Forrest has been named Western Australia's 2017 Australian of the Year.

The Fortescue Metals Group founder and Minderoo Foundation co-founder received the honour at a ceremony at Perth's Government House.

Mr Forrest was chosen for driving hands-on philanthropy to support 250 community causes, as well as his work to highlight Indigenous disparity in Australia, and for drawing attention to the 45.8 million people trapped in modern slavery.

"We're just so lucky to be West Australian. We're so incredibly fortunate to be Australian. We should be fiercely and passionately proud to be Australian," Mr Forrest said.

"If we in Australia say we're not going to stand for any form of modern slavery, like we're not going to stand for any form of Indigenous disparity, then we're together, working together as individuals.

"As individuals we can make that difference, and I ask you to join me to make that difference."

Mr Forrest was one of four finalists for the award, along with breast cancer researcher Professor Arlene Chan, online education pioneer Dr Martin Dougiamas and paediatrician Dr James Fitzpatrick.

Four finalists for national awards

The WA Senior of the Year award went to 65-year-old social entrepreneur Peter Kenyon, who has worked with more than 1,600 Australian and 59 overseas communities to stimulate economic renewal.

Mr Kenyon said community was the most important thing in society.

"If more people could just begin to discover citizenship, begin to discover that together in community we can start to really make a better world, where we actually live," he said.

Social innovator Abdullahi Alim, 24, who has co-founded an innovation lab to solve contemporary problems, was named WA Young Australian of the Year.

Mr Alim, who was born in Somalia, urged the audience to embrace Australian values of mateship, comradery and that everyone deserves a "fair go".

"To me, being Australian isn't defined by birth nor is it a measure of physical attributes," he said.

"To all the young Australians, from racially, culturally and religiously diverse communities, know that the biggest disservice you can do is to internalise insecurities of those who doubt or question your Australian-ness.

"You are just as much Australian as anyone else and I look forward to sharing this platform to extend your stories."

The WA Local Hero award went to senior Bunuba woman June Oscar, who helped secure alcohol restrictions in her community of Fitzroy Crossing in 2007 and has overseen Australia's first study of Fetal Alcohol Spectrum Disorders.

The four winners are now finalists for the national awards, which will be announced in Canberra on 25 January.