The Saturday night concert, with Australia Day falling on a Monday, would be at Rushton Park and feature up to six Australian acts.
If approved, it would be a one-off event.
A report to the council recommends approval, subject to the event running from 3pm to 10pm, rather than 3pm to 11pm.
Promoter Star Special Events has represented or managed performers including Australian Crawl, Ian Moss, Kate Ceberano, Bay City Rollers and Pseudo Echo.
This year, the company supported Oz Rock in Busselton, produced Bridgetown Blues Festival and provided Crab Fest headliners Daryl Braithwaite and Ian Moss.
The last similar event was the Rollercoaster Music Festival in 2009, but the western foreshore proved too limiting due to infrastructure costs and complaints from residents.
The report said Rushton Park would be ideal.
Benefits listed in the report included the park being fully fenced, with a grandstand, bar and function areas and proximity close to public transport.