Australia scraps knights and dames for second time under republican Prime Minister Malcolm Turnbull

The change to the Order of Australia is expected to herald more steps away from the British monarchy

Prince Philip was controversially awarded a knighthood on Australia Day by Tony Abbott last year (Getty Images)

Australia has scrapped knights and dames from its honours system for the second time in a move that some republicans believe heralds a move away from the British monarchy.

Malcolm Turnbull announced the change today, less than two months into his term as Prime Minister, saying the Queen had agreed to his government’s recommendation.

“The Cabinet recently considered the Order of Australia, in this its 40th anniversary year, and agreed that Knights and Dames are not appropriate in our modern honours system,” he said.

Existing knights and dames will not have their titles changed and the process of awarding honours remains unchanged.

The Order of Australia replaced the British honours system in 1975 and knights and dames were dropped just 11 years later, being dismissed as anachronisms.

But the titles were reinstated by Tony Abbott last year, when he controversially selected Prince Philip for a prestigious knighthood on Australia Day.

Video: Prince Philip's best gaffes

He was officially knighted by his spouse at Windsor Castle earlier this year, following his other titles as a Knight of the Order of the Elephant in Denmark, a Royal Chief of the Order of Logohu in Papua New Guinea, and a Knight Grand Cross of the Order of the Netherlands Lion.

Mr Abbott attempted to fend off widespread criticism at the time by saying the royal was being recognised for a long life of duty and service, citing Prince Philip's Duke of Edinburgh award scheme as having helped thousands of young people in Australia for more than 50 years.

But members of the public said giving a member of Britain's royal family the country's highest honour had created a “time warp”, and have since cited the decision as a key point in the decline of Mr Abbott’s tenure.

His successor is a former leader of the Australian Republican Movement (ARM) that wants to replace the Queen with a president as head of state.

Malcolm Turnbull became Prime Minister of Australia on 14 September (Stefan Postles/Getty Images)

Supporters now believe Mr Turnbull could make more significant moves away from the British monarchy, which Australians narrowly voted to retain in a 1999 referendum.

“It will be the first of a series of moves I believe that he will make,” Peter FitzSimons, chairman of the ARM told The World Today programme.

But the Australian Monarchist League accused Mr Turnbull of trying to “break Australia's heart”.

“The scrapping of knighthoods...gives all who value constitutional security and stability cause for concern that this is just the beginning of another campaign of republicanism by stealth,” the group said in a statement.