It is supposed to be unifying, dignifying and above reproach. But the freshly minted 2016 Australian of the Year award is embroiled in bittern-ess, recrimination and division with a finalist from the beaten brigade, transgender military officer Catherine McGregor, shooting down the choice of David Morrison as "weak and conventional".
A rift between RAAF reservist Group Captain McGregor and her former boss, retired Lieutenant General Morrison, the former chief of the army, was aired in a gay and lesbian journal, the Star Observer, as the nation went back to work after Australia Day celebrations. 
"He's on a steep learning curve when it comes to LGBTI (lesbian, gay, bisexual, transgender, intersex) and trans issues, he needs to learn a lot and rapidly," Group Captain McGregor, a former polit-ical adviser, told the journal.
She said Mr Morrison "dead-named" her since her 2012 transition, meaning her commanding officer at the time she was his speech writer in the army had referred to her by her old name, Malcolm, and used "him, he and his" instead of female pronouns.
"It shows a lack of skill on trans issues, he didn't do it intentionally â€¦ but that showed a clunkiness he needs to learn," she added.
She said she felt "really sad that they (at the National Australia Day Council) did not have the courage to go with an LGBTI person. I thought it was time â€¦ it was a weak and conventional choice".
In a reference to Queensland, where she has not lived for more than 40 years, the new Queenslander of the Year said she "got allocated that state" for the awards.
The Canberra resident's lack of any recent connection to Queensland raises new questions about how the awards are administered.
Social media devotees immediately tweeted her Star Observer interview, provoking criticism of her for appearing to have sour grapes about the winner's triumph.
The episode will invite further scrutiny of the probity of the judging process for the Australia Day awards as it defends itself against charges of being overtly politically correct, progressive and cause-driven, instead of merit-based.
In an abrupt turnaround yesterday, Group Captain McGregor told The Australian she regretted her comments. "I owe David Morrison and the Australia Day Council an apology," she said. "It was a poor choice of words from me." She had also issued a series of tweets in which she said sorry to the Australia Day Council. "I am entirely accountable for this and withdraw this aspersion unreservedly," she said. "I had spoken in the context of the recipient (sic) fine record in the realm of women's rights. My language was wrong. I apologise to David Morrison and to the selection committee." The council replied that it was "very disappointed" by Group Captain McGregor's comments, and her apology was "appreciated and accepted".
Mr Morrison said he hadn't spoken to Group Captain McGregor about her comments but told ABC Triple J's Hack: "I'm sorry she's sorry. And I absolutely accept that I do (need to learn). I'm a middle-aged Anglo-Saxon heterosexual male. I do have much to learn - I'm not closed off to that at all.
"I do speak with passion about equality and it's not just gender; it's sexual orientation, it's the way people should be able to live their lives and then reach their potential with making a contribution to our society." Kevan Gosper, who chaired the National Australia Day Council between 1996 and 2000, warned against the trend of giving awards to people for taking positions on social issues that were best dealt with through the national political discourse.
"To give annual awards for people who have contributed to Australia where it is going beyond what their role is and what they are paid for is a great thing," Mr Gosper said.
"But we should be very careful not to recognise people with an award just because they have backed a particular social issue." Mr Morrison came to mainstream prominence with a 2013 speech, written by Group Captain McGregor, then his staffer. The speech, a powerful rebuke to all Defence staff who disrespected women and their colleagues, made a strong impression with lines including: "The standard you walk past is the standard you accept." He was also an outspoken backer of her when, as Malcolm, she said she would become Catherine, but they subsequently fell out. While not singling out her former boss, she told The Australian this month she was appalled that Defence chiefs had not taken disciplinary action against colleague Major Bernard Gaynor Snr for repeatedly referring to her as a "he".
Instead, last week Defence paid Major Gaynor, who has left the army, $25,000 in compensation after a finding against Group Captain McGregor that she was guilty of "unacceptable behaviour" for offensive tweets which ridiculed the major.
Group Captain McGregor became Queenslander of the Year for her work as a diversity champion, with the citation describing how she helped people gain "a greater understanding and acceptance of the transgender community".
The Australia Day Council is headed by Ben Roberts-Smith, a Victoria Cross winner. A spokeswoman for the council did not respond to The Australian's attempts to seek further comment from him or from the new Australian of the Year.
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