The much-loved Australia Day concert and fireworks at Cronulla has been cancelled due to the coronavirus pandemic.
Sutherland Shire Council has also scrapped the Menai celebration and is planning to replace them with a number of smaller scale events in various locations.
A council spokeswoman said the shire's Australia Day celebrations were among the largest and most anticipated in the region.
"With the ongoing impact of the COVID-19 pandemic limiting our capacity to support large public gatherings, council has been unable to commit to staging the large-scale Australia Day celebrations traditionally held at Cronulla and Menai again in 2021," she said.
"Council is however committed to supporting our community to mark the occasion in a way that adheres to whatever public health orders may be in place, with a number of smaller scale events and entertainment options currently across Sutherland Shire in advanced stages of planning."
The spokeswoman said updates on the planned schedule of community events would be provided early in the new year.