Alice Springs mayor Asta Hill says she will not take part in the local citizenship and awards ceremony "on a day that causes harm to parts of our community".
The major said citizenship ceremonies had become a highlight of her role.
"It was a privilege to witness the joy and pride people felt on becoming Australian citizens," Ms Hill said in a statement.
"However, like a growing number of Australians, it is my personal view that January 26 is not the right date to celebrate our national day."
Ms Hill said January 26 was a day of mourning for many Indigenous people, marking the First Fleet's 1788 arrival in Australia and the start of British colonisation.
"While I do not intend to stand in the way of others' celebrations, I do not personally want to play a formal role on a day that causes harm to parts of our community," the mayor said.
Alice Springs citizenship and awards ceremony will instead be conducted by Deputy Mayor Allison Bitar.
It marked the first Australia Day ceremony for Ms Hill, who was elected in September 2025, becoming Alice Springs' first Greens-endorsed mayor.
Ms Hill's call is expected to reignite debate over whether to change Australia Day's date.
Opponents have called the January 26 anniversary of the First Fleet's arrival "Invasion Day".
A number of local councils across Australia have chosen not to mark the day, instead holding citizenship ceremonies on alternative dates.
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