Tamworth Regional Council has reassured residents the community's safety has been "paramount" in the planning.

Bicentennial Park will be fenced off and a maximum of 3000 people - including children - will have to do a two-step sign-in on entry, as well as register for tickets beforehand.

"It's very important to be able to bring back entertainment ... to give the community a lift in spirits in terms of the last 12 months that we've endured," council's events manager Barry Harley told media on Thursday.

"This is an event for the local community, it's not necessarily designed to attract people from outside the area."

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The concert will light up the park - and the skies above - from 6pm on January 26, when live music booms through the socially-distanced crowd and culminates in a finale of fireworks.

"One of the most exciting parts of the Australia Day celebrations will be fireworks because it's something we haven't seen in Tamworth for some time due to drought and fire regulations and all those sorts of things," Mr Harley said.

"It's a positive view to what can be expected in the next 12 months hopefully with live music coming back, which we're all looking forward to."

Mr Harley said while council can't control "visitation" when there are no mandated health orders in place, the concert will be strictly run to the tune of whatever official COVID-19 rules are current at the time.

"Social distancing will be monitored by marshalls on the day and that will allow family collections to be seated together but distanced from other parties," he said.

"We meet quite regularly with emergency services and police and to this moment, there is no major concern about what may or may not occur in a couple of weeks' time."

The Bushwackers band has been announced as the headline act, and the iconic musical crew will mark their 50^th anniversary in style at the event.

More acts are expected to be announced in the coming days, and food stalls will roll into town for the event.

"Among everyone, the artists have been the biggest hit with these COVID restrictions and most of them have not worked at all for eight or night months ... there's a massive amount of excitement about returning to that live entertainment scene," Mr Harley said.

Tickets can be secured at the Destination Tamworth website.

Tamworth Regional Council confirmed a $10,000 grant from the NSW government's Festival of Place - Summer Fund was secured to contribute to the event.

Council's Australia Day awards ceremony will also run, but will be a bit different due to the ongoing pandemic.

One ceremony will be held at Ray Walsh House for limited guests, but will be livestreamed.

It will include the formal citizenship ceremony, as well as the presentations of awards to recognise efforts of residents from around the region.