Victorian opposition leader Brad Battin has labelled January 26 protests "hateful," as the new Liberal leader sides with businesses in Melbourne CBD.

The annual January 26 rallies in Naarm are some of the biggest in the country, starting at the foot of Parliament house and winding their way through the city.

Last year saw a number of Palestinian flags present— intersplicing with what some Indigenous leaders argue is a correlation between the struggle for Indigenous rights in Australia with those in Palestine.

The regular pro-Palestine protests in the CBD have been criticised by the opposition, and even recently by Premier Jacinta Allan - who called for them to halt after the recent cease fire announcement in the Middle East - and on Thursday the Liberal Leader condemned the rally to take place on Sunday.

The leader of the party which withdrew its previously bipartisan support for the Treaty support without first informing Indigenous leaders in the state said the "hateful protests" risked dividing the community.

"Australia Day should be a day where we all come together to celebrate what we have in common and the great fortune we all have to live in the greatest country in the world," Mr Battin said, the Herald Sun reports.

On the day the 'not a date to celebrate' petition reached more than 26,000 signatures, calling for a change of Australia's national holiday from January 26, Mr Battin argued, "...this Australia Day weekend, instead of unity our city will be divided and disrupted".

"Thousands of protesters are planning to cause mayhem in the city, businesses have been told they can't be protected, and it's all being led by an ­organisation funded by Premier Jacinta Allan's own department," he said.

"These endless hateful protests are a direct result of Labor's weak leadership and inaction, which has allowed hate and division to fester in our once-harmonious city."

The conservative tabloid canvassed the views of two CBD business owners, who argued the rally being held on the same day as the Australian open men's final needed to be halted due to its impact on business.

The rally is scheduled to begin at 10am, with last year's event ending by approximately 1pm.

Last year's huge rally, attended by National Indigenous Times, was peaceful and harmonious.

The debate around the appropriateness of January 26 as the national public holiday - which was only officially recognised as one in 1994 - has continued to grow in stature.

Speaking to reporters on Tuesday, the First Peoples' Assembly - the democratically elected voice for Indigenous people in Victoria - said the date needed to be changed to be more inclusive for Indigenous people, many of whom view it as a day of invasion.

"For many Aboriginal and Torres Strait Islander people, this day represents a day of mourning; a reminder of the beginning of colonisation, dispossession, and systemic oppression," Assembly co-chair Ngarra Murray said.

The Wamba Wamba, Yorta Yorta, Dja Dja Wurrung and Dhudhuroa woman added: "Opponents of this change argue that altering the date dilutes national pride. However, pride in a nation should not come at the expense of ignoring the suffering of First Peoples."

The Assembly's encouragement of people to attend rallies to protest the date earnt the ire of Mr Battin, who said the body - who are democratically elected - shouldn't be calling for people to attend rallies or protests.

Despite the protests being entirely legal, Mr Battin argued a taxpayer-funded body - which he linked to the government - shouldn't encourage people to protest.

"It is very disappointing for people calling for protests including an organisation funded by the Allan Labor Government," he told Sky News.

Whilst some have called for the abolition of the day altogether, other high-profile Indigenous community leaders have called for a day that is inclusive to all.

Australia is the only western nation whose national day celebrates its colonisation, rather than its independence from its coloniser.

"Across Victoria, Traditional Owners have fought hard to remain strong on Country and in culture, and that's worth celebrating," chief executive of the Federation of Victorian Traditional Owner Corporation, Paul Paton, said.

"Our people belong to the world's oldest continuing cultures, sharing our stories, language and connections to everyone and passing down our culture to the next generation for all to enjoy—that's what I want to celebrate."

Liberal and National parties across the country have been criticised by Indigenous-led organisations and groups for their supposed backpaddling of Indigenous rights, as well as pushing culture wars.

Federal opposition leader Peter Dutton's comment that he would not stand in front of the Indigenous flag if he won the federal election this year prompted VACCHO chief executive Dr Jill Gallagher to argue the former policeman was promoting the "very division he is pretending to address".

This move was mirrored by WA Liberal leader Libby Mettam last week, in a decision National Indigenous Times revealed was rejected by other Liberal state MPs.

On the eve of January 26 last year, the Victorian opposition withdrew their support for the Treaty negotiations, despite their previous support, without first telling Indigenous leaders.

The party has no Indigenous MPs in the state.