The ACT government will host a morning concert in Commonwealth Park instead of the annual fireworks show along the lake at night.

The event will feature Australian indie-pop artists Japanese Wallpaper and Nicole Millar, supported by singer Monica Moore. It will include food trucks and family friendly entertainment and will be held between 10am and 1pm at Stage 88 in Commonwealth Park.

The event would follow the flag raising and citizenship ceremonies at Rond Terrace.

Acting minister for the arts Rachel Stephen-Smith said the changes to the format of the event was due to impact of bushfires in the region.

"While our neighbours continue to battle bushfires, our emergency services personnel on alert and unpredictable weather in the weeks ahead, this is not the year for us to celebrate with fireworks," she said.

"Rather, Australia Day is an opportunity for us to acknowledge the many Australians who are currently engaged in efforts to reduce the harm and trauma caused by bushfires this season.

"Due to the ongoing hot and dry weather and likelihood of ongoing smoke and poor air quality, a decision has been made to move the event to the morning."

Ms Stephen-Smith said the government was committed to making the morning concert "inclusive".

"I am...aware that Canberrans have a range of views about Australia Day and that many do not see 26 January as a day for celebration. The ACT Government is committed to ensuring that our event is inclusive and respectful of all views, recognising that it is held on Ngunnawal land," she said.

The ACT government said it would explore opportunities with several charities to fundraise at the event.

It is the second fireworks event in Canberra to be cancelled after the New Year's Eve event had to be cancelled due to a total fire ban.

On Thursday, the Queanbeyan-Palerang Regional Council mayor Tim Overall announced the annual Australia Day fireworks in Queanbeyan Park had been cancelled.

Mr Overall said the money saved could go towards bushfire relief. He said the council would consider at its next meeting donating the money saved to the Braidwood Community Help fund.

In December, the council pledged to donate $10,000 to the fund, set up by the Braidwood Community Bank and the Braidwood Life Centre. The fund supports farming families affected by drought and bushfires.

Two significant bushfires have burned in the region over recent months. The North Black Range fire in the Tallaganda National Park, west of Braidwood and the Charley's Forest Road fire in Nerriga.

Mr Overall said redirecting funds from the fireworks could contribute a further $5000 to the fund.

"Our community, particularly those in Braidwood, Nerriga, Araluen, Majors Creek and surrounds have faced a very challenging time in recent weeks and months," he said.

"Persistent dry conditions, water restrictions, bushfire and lingering smoke haze have all contributed to what has been a very tough end to 2019 and a difficult start to 2020."

There is not a blanket ban on fireworks in Queanbeyan. Other hirers of facilities could include firework displays if granted appropriate permits by the NSW Rural Fire Service.

The council hosts an annual Australia Day event at Queanbeyan Park.