There were celebrations all over Australia to mark the national day but there were protests too and in Sydney they turned violent when one man allegedly tried to set fire to an Australian flag in inner city Redfern.
Many Indigenous Australians regard January 26 as the date which marks the start of an Aboriginal genocide following the arrival of the First Fleet more than 200 years ago.
The clashes saw one arrest and one police officer injured.
Many Indigenous groups say the date is a sad reminder of when their lives were forever changed.
And former Coalition cabinet minister Ian Macfarlane agrees with them.
"I think it's inevitable that Australia Day is going to have to be changed. The level of unease, if not displeasure, with the date that it currently is amongst our Indigenous community means that this divisive debate will continue and continue on until it's resolved, and it will continue to be a distraction away from the major issue which is to address Indigenous disadvantage in Australia. This is a peripheral issue, but it's important to Indigenous people, we need to scrape this barnacle, get it sorted, move Australia (Day) to a day that doesn't remind Indigenous people of past wrongs, and doesn't offend them."
He says while he doesn't have a preference over when Australia's new national day could be, he does have some suggestions.
"Obviously people think of the 26th of January as an historic day in Australia, but in fact it's not even a quarter of a century old, it was done in the mid-nineties. So before that becomes embedded, let's be sensitive to what's happened in the past, let's pick a compromise, let's move to a date that is a date that all Australians can celebrate. I've suggested March 1, maybe there's a better date, but it does have to be a date that is of significance in terms of Australia becoming a nation, and it does also, in my opinion, need to be able to continue the great tradition we've built in the last 25 years of celebrating in the outdoors."
The push to move the celebration has been backed by Indigenous leader Warren Mundine.
He's told Sky News, January 26 is a day of solemn remembrance.
"From an Aboriginal perspective, we want to celebrate Australia Day. We think it's a great day, Australia's a great nation. We want to be part of that process and you see some of the ceremonies today - you'll see Aboriginal people taking part in ceremonies today. The issue with the 26th of January we know is because that's when Arthur Phillip coming into Sydney Cove and then the destructive nightmare that happened after that for Aboriginal people. If you go back to what Australia day is about, celebration, bringing us together, uniting us together. We need to look at (another) day."
Sharing this view are Indigenous hip hop artists Nooky, L-Fresh and Thundamentals, who jointly released the song "Change the Date".
But former federal MP Ian Macfarlane hasn't received much support from the nation's most powerful politicians.
Deputy Prime Minister Barnaby Joyce has described the debate over the possible change as "political correctness gone mad", and says he's sick of hearing about it.
Meanwhile, Prime Minister Malcolm Turnbull has reiterated that Australia Day will stay where it is for the forseeable future.
"There are many bigger and more profound issues, including Constitutional recognition, to deal with than the date of Australia Day. Changing the date does not have my support but it is a debate and I know Ian, he is a good friend of mine and I respect his point of view but it is a debate everyone is entitled to have but it is not a change the government supports."
