Under the new rules, citizenship ceremonies can be held on the three days either side of January 26th, so any time from the 23rd to the 29th.
The decision reverses changes to the code governing citizenship ceremonies that were introduced by the former Coalition government in 2017.
Those changes had forced local councils to hold a citizenship event on Australia Day.
The new decision reverses a ban on two Melbourne councils, which have been barred from holding any citizenship ceremonies since 2017.
Immigration Minister Andrew Giles says his government wants to bring Australians together, not divide them.
"This is about recognizing that a pathway to citizenship is fundamental to who we are as a modern multicultural nation. It's about recognising that everyone completing that journey should be able to do that in their own community accompanied by friends family and local elected officials."
The federal government is maintaining that it still has a preference for citizenship ceremonies to be held on January 26th.
Prime Minister Anthony Albanese says that's what he'll be doing next Australia Day.
"But the rules the way that they were fashioned meant that citizens, who were not part of the decisions of when ceremonies would be, were missing out on becoming Australian citizens. We want people to become Australian citizens and that is why we should not place red tape for ideological reasons in front of that opportunity."
But the Opposition is warning it could be part of a much wider shift.
