The 72-year-old was a federal Liberal minister in the Fraser government in the 1970s and '80s.

But he has maintained a decades-long commitment to indigenous rights - before, during and after his political career.

As founding co-chair of Reconciliation Australia and an early advocate for Aboriginal voting rights in 1961 and for the 1967 referendum, he helped establish the Aboriginal Legal Service of Western Australia in his national role as Minister for Aboriginal Affairs.

For many years, Mr Chaney was deputy president of the National Native Title Tribunal and, more recently, chair of Desert Knowledge Australia and the board of Central Desert Native Title services.

He was instrumental in establishing the Graham (Polly) Farmer Foundation, which supports Indigenous young people to reach their potential.

Mr Chaney said of recognition of aboriginal people in Australia's constitution, "This is the best time in a lifetime for the possibility of Aboriginal advancement."

"I think we should have the referendum when the Australian people are ready for it and that will take some more work."

Mr Chaney reflected on the wildly successful 1967 referendum which allowed indigenous people to be counted in the census and for parliament to make laws concerning them.

"That was a 10-year campaign ... it was a brilliant campaign and I'm old enough to remember handing out how-to-vote cards," he said.

"We haven't had the same amount of time to build up the momentum yet but that's precisely what we're trying to do at the moment."

AFL player and Aboriginal leader Adam Goodes was named Australian of the Year for 2014 by the National Australia Day Council.

Paralympic gold medallist Jacqueline Freney was chosen as Young Australian of the Year while boss of children's charity TLC For Kids Tim Conolan was named Australia's Local Hero for 2014.

- with AAP