Australia Day crowds gather in NSW; Indigenous people call for national treaty

Drizzly weather has failed to stop crowds gathering to celebrate Australia Day at Sydney Harbour, where they watched ferry races, flag ceremonies and a "tug and yacht ballet".

Across town, Aboriginal leader Warren Mundine called for a national treaty to enforce Indigenous land rights and preserve the culture of Australia's original inhabitants.

On the Harbour, Australia's newest and largest naval ship, HMAS Canberra, was central to the celebrations, dwarfing everything nearby as it made its way to the centre of the harbour from the Garden Island naval base.

New South Wales Governor David Hurley took a 21-gun salute on the flight deck of the $1.5 billion ship, which is capable of carrying 1,400 personnel and 18 helicopters.

Ferries then raced in the annual Ferrython race before more than 50 boats took part in an on-water parade, cheered on by patriotic chants from the crowd.

At Parramatta, in Sydney's west, celebrations started early with a hot air balloon display at sunrise.

In Coffs Harbour, on the NSW mid north coast, Indigenous culture has been central to celebrations at the annual Saltwater Freshwater Festival, headlined by singer-songwriter Archie Roach.

"I love the thought of the Feshwater-Saltwater because you know it's two different stories," he said.

"Most rivers meet the sea, and it's a lovely idea."

Yabun Festival of Indigenous culture draws 10,000

More than 10,000 people turned out for the annual Yabun Festival in Sydney's Victoria Park, held each Australia Day to celebrate the survival of more than 40,000 years of Indigenous culture.

Mr Mundine said it was impossible for Indigenous people to celebrate Australia's national identity on a day they associate with invasion and colonisation.

He has called for a national treaty to cement the governance of land belonging to Aboriginal and Torres Strait Islander people.

"You look at New Zealand, you look at Canada, you look at the United States, they're all countries, similar history, set up by the British, similar law and everything like that," he said.

"You know we're the only country in the Commonwealth that has not done a treaty with its Indigenous populations.

"To me that's a glaring omission and it's quite within our grasp, quite within our intellect to do it.

"We want to have control of our own languages, our own history, our own culture, our own country and this (treaty) would finish all the native title business, it would finish all the land rights business, it would bring us together as a nation."

Victoria Park, just to the west of the CBD, is in the heart of Gadigal Country.

The Gadigal people are part of the Eora Nation and the word "yabun" means "music or songs with a beat" in the Eora language.

The one day festival is in its 13th year and is a chance for people from all walks of life to experience the music, dance and food of Australia's Indigenous cultures.

About 1,000 people marched to the festival along Cleveland St in Redfern, in a protest over land rights.