This year, the January 26 holiday began with the Survival Day dawn service at Lake Wendouree, now in its third year, and was followed by the Picnic in the Park at Victoria Park and the citizen awards.

This was the first year for the picnic event, which was created as a 'cultural event' to replace the once-annual fireworks display over the lake.

However, the event would have been just as welcome on any other day of the year, with not an Australian flag in sight for the community-focused event.

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Ballarat mayor Daniel Moloney said council, like many around the country, was 'walking a tightrope' regarding the changing attitudes towards January 26.

"It's one where we want to be out with our community celebrating the wonderful country we live in, but also it's taking a more reflective element to it now where I think more and more people are becoming aware of the hurt today causes our Aboriginal and Torres Strait Islander people. As a result, the events I think need to continually evolve as well to reflect the changing sentiments," he said.

"From a council point of view, seeing sentiments are changing that we won't necessarily please everyone with the events that we're doing but we're trying, I guess, to reflect the sentiments of the day."

Cr Moloney said council had received varied feedback regarding future January 26 events, with some wanting celebrations while others asking for no events.

"Trying to find a position that works for the majority of people is a bit of a challenge," he said.

"Many people are expressing that they wish there was a day that we could celebrate what it means to be an Australian as a complete community, but when you know that there are important members of our community who see the day as one of hurt and sorrow, it's hard for everyone to celebrate.

"I really do wish there was that opportunity to do it, to have a day that unifies everyone. I think that's a sentiment that's expressed quite widely."

Cr Moloney said while the future of the January 26 public holiday was ultimately a federal government decision, local government could lead conversations.

"I think many of these types of discussions are often led at a local level by councils all around Australia. People will say to us, this is not an issue for councils to engage in, this is purely a federal government decision, and that's correct to a degree," he said.

"We do need federal governments to make decisions about our national public holiday and what we celebrate, but I think it's also okay for locals to have a voice in that discussion, and that's what we're starting to see emerging more and more every year around Australia."

While Picnic in the Park presented a market-like atmosphere on what is a sombre day for some, Ballarat residents still took advantage of the day off and warm weather.

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Lucas resident Brett Miller said the event was well-placed on the public holiday but could also work on a weekend.

'It just gives you something to get out and do with the young fella and we'll just have a wander around and fill in some of the day," he said.

"Everyone's got the day off so it makes sense. Either that or a weekend but on a public holiday you're always looking for something to do so it's good they put on something like this."

Alfredton resident Ebony Howes said it was good to have a community event on the public holiday.

"It's really good to have on Australia Day and good for the kids to get out on a good day too," she said.

"I think it's really good to have today, it's my mum's birthday too so it's a bit of an extra celebration, but it's good to have."