Hey guys, dump the council: Leyonhjelm

Liberal Democrats senator David Leyonhjelm has called for the Australia Day Council to be abolished in the wake of comments by Australian of the Year David Morrison.

Mr Morrison, a retired chief of army who is campaigning for gender equality, has stopped using the term "guys" when speaking to groups of people.

He says exclusive language should be avoided as it shows a lack of respect.

Senator Leyonhjelm told AAP the best response to such "political correctness" would be to shut down the National Australia Day Council which oversees the Australian of the Year awards, and save the federal budget $4 million a year.

"This is political correctness with bells on it," he said.

"What are we going to substitute? XX and XY (chromosomes)? People with jiggly bits and dangly bits?

"I think Australians are over it."

Senator Leyonhjelm says freedom of speech was already under enough threat with defamation laws and anti-terrorism legislation which impacted on media reporting.

"I don't think Morrison has done anything to inspire us," he said.