Anthony Albanese has lifted the lid on how he lost a bet to Dylan Alcott on the way back from the Queen's funeral, leading the tennis champion to joke that the Prime Minister should 'change the locks' at The Lodge.

Alcott was welcomed by Albanese at the awards ceremony on Wednesday, with the retired wheelchair tennis star returning after winning the Australian of the Year gong in 2022.

'Here's trouble', Albanese said when he warmly welcomed Alcott, to which the 32-year-old replied that he was going to 'pick a room'.

The Prime Minister explained how he had lost a game of pool to the 15-time grand slam champion during a layover as they returned from the Queen's funeral in London.

'On the way back … he did beat me. And we did bet he could get a night at the Lodge,' Mr Albanese said.

'Dylan's been casing the joint since he arrived, but I did win one of his Wimbledon trophies.'

Alcott said the Australian of the Year title gave him an incredible platform to advocate for people with a disability. 

'People keep asking me, am I proud of what I achieved, and that's crap because we did it together,' he said.

'I was really grateful for the amount of people who wanted to listen and learn about disability.'

From community heroes to advocates and Indigenous leaders, finalists from across the country gathered in Canberra ahead of an awards ceremony on Wednesday night. 

Human rights and refugee advocate Craig Foster, the NSW Australian of the Year, said the multicultural field reflected Australia as a nation.

'It really is an extraordinary group,' he said.

'So whether you're talking here about palliative care, or sustainability and climate, or refugee rights and multiculturalism, Australia is going to be very well served by the 2023 Australian of the Year.'

Taryn Brumfitt was named the 2023 Australian of the Year for getting Aussies to 'love their bodies'.