The senator has also asked the National Australia Day Council to better explain its decision to cancel the event, which he described as "quintessentially Australian".

"I'm disappointed with the decision. I've explained that to the Prime Minister and to Ben Roberts-Smith as well," he said.

"I would urge them to reconsider it, I would urge them to work with the ACT government to have another function that is open to the public."

The concert brings tens of thousands of people to the lawns of Parliament House each year, boasting well-known Australian acts like Gurrumul Yunupingu, The Whitlams, and Spiderbait.

This year's event was marred by bad weather, which council chief executive officer Chris Kirby said had put the safety of the public at risk.

Mr Kirby wrote to Chief Minister Andrew Barr this week to inform him of the decision.

Northern Territory Chief Minister Adam Giles, who has been vocal in calls to move the celebrations out of Canberra, praised the council's decision on Wednesday.

"I welcome the decision by the Australia Day Council to cancel the concert in Canberra," he said.

"Most definitely, Australia Day is about Australia, not Canberra, it should be promoted as a regional event."

In response, Mr Barr said he was "looking forward to talking with the new Northern Territory chief minister after this weekend", a less-than-subtle reference to Saturday's NT election.

"Canberrans are Australians too, and we should be part of Australia Day celebrations, and the national capital is where that sort of significant event should take place," Mr Barr said.

Senator Seselja, while not wishing to speak for Mr Turnbull, said he believed the decision had been taken at "arm's length" from the government.

He suggested the cost of the event may have also played a role.

"It would be really helpful for them to clarify why they've taken this decision," he said.

Mr Barr welcomed Senator Seselja's intervention, and said he was open to working with the council and the government to save the event.

Correction: A previous version of this article referred to Ben Roberts-Smith as Australian of the Year