In a dramatic turn of events during Australia Day, the prime minister has been reported around the world to have had a 'Cinderella' moment when she tumbled and lost a shoe while being dragged by security away from an angry mob of protesters.

Prime Minister Julia Gillard had to be dragged away by a security team after about 200 angry protesters went out of control yesterday, banging on the glass of the restaurant where the PM was awarding the National Emergency Medals with opposition leader Tony Abbott, who was also extracted from the meeting location.

Protesters expressed their resentment over comments by Mr. Abbott yesterday morning, saying that the Aboriginal Tent Embassy in Canberra should close.

The protesters yelled "shame" and "racist" during their protest.

The Sydney Morning Herald reported as many as 1000 people had gathered to observe the 40th anniversary of the Tent Embassy.

One of the protesters, the chairman of the Northern Basin Aboriginal nations, Fred Hooper, spoke to Sky News shortly after the incident.

''We were peacefully celebrating the 40th anniversary of the aboriginal tent embassy. The opposition leader on national television made a comment to tear down something that have built over 40 years, which is sacred to us,'' he said.

''So what do you expect us to do when we're 200 yards away from the person that makes that comment? Do you expect us to say, 'yeah Tony we're gonna do that now? We're gonna rip it down?'''

Prior to the angry protest, Mr. Abbott was asked by the media yesterday morning about his insight on the Tent Embassy, whether he thought it was still relevant or not.

"Look, I can understand why the Tent Embassy was established all those years ago. I think a lot has changed for the better since then," he said, in comments which appeared on Sky.

"We had the historic apology just a few years ago, one of the genuine achievements of Kevin Rudd as prime minister. We had the proposal which is currently for national consideration to recognise indigenous people in the constitution.

"I think the indigenous people of Australia can be very proud of the respect in which they are held by every Australian and yes, I think a lot has changed since then and I think it probably is time to move on from that."

Supporters of the Tent Embassy did not take the comments well at all.

"You've got 1000 people here peacefully protesting and to make a statement about tearing down the embassy - it's just madness on the part of Tony Abbott," Mr. Anderson told the Herald.

Meanwhile, asked how she felt after the incident, PM Gillard told the press:

"I am made of pretty tough stuff and the police did a great job."