Malcolm Turnbull has launched a blistering parliamentary attack on those who want to change the date of Australia Day, calling the national holiday a time for celebration of a successful multicultural society.
The decision by Victoria's Yarra City Council to change the way it commemorates the day was "utterly out of step" with Australian values, he told MPs on Wednesday.
The east-Melbourne council voted unanimously on Tuesday to stop referring to January 26 as Australia Day and do away with citizenship ceremonies on that date.
Councillors deemed the date inappropriate because it marked the beginning of British colonisation and the loss of culture, language, and land for Australia's first peoples, Yarra Mayor Amanda Stone said in a statement.
The federal government has now stripped Yarra City Council of its power to hold citizenship ceremonies.
Federal funding provided to the council to conduct citizenship ceremonies could also be revoked.
The commonwealth response will mean citizens must attend ceremonies held by neighbouring councils, and federal immigration officials will hold services if needed, including on Australia Day.
Mr Turnbull said festivities on January 26 recognised a wide range of cultures and celebrated the fact the country was home to the oldest human civilisation.
Ceremonies and celebrations on Australia Day began with an acknowledgment or welcome to indigenous country and concluded with the newest Australians taking up citizenship.
The Yarra Council decision sought to take a day that united Australians and turn it into one that divides, Mr Turnbull said.
The day recognised that the history of European settlement in Australia had been complex and tragic for indigenous Australians.
"But on Australia Day, we recognise the greatness of our achievement as Australians."
To change the date would be to "turn our back on Australian values", he said.
Opposition Leader Bill Shorten did not support changing the date of Australia Day, saying reconciliation was more about changing hearts than shifting a public holiday.
Earlier, veteran Liberal senator Eric Abetz took a shot at "tin-pot" mayors acting as if they were the prime minister.
Senator Abetz challenged them to stand for federal parliament, rather than acting like a prime minister.
