CANBERRA -- Australia's minister for health on Sunday paid tribute to former Prime Minister Harold Holt, who on this day 50 years ago disappeared off Victoria's south coast while swimming in the surf.

Holt, an ocean lover who was just two years into his first term as Australian prime minister, was swimming off Cheviot Beach on Dec 17, 1967 when he disappeared in rough waters and was presumed dead.

On Sunday, a 50-year ceremony was held at the beach from which he disappeared, and Greg Hunt, minister for health and federal member for Flinders - the electorate in which Holt was lost - paid tribute to Australia's popular 17th prime minister.

"A beautiful service was held today to commemorate the loss and celebrate the life of Harold Holt - an extraordinary Australian and prime minister," Hunt said in a video posted to his social media channels.

"He ended the White Australia Policy, he brought Indigenous Australians into the full, true status of the Australian family, and he brought the first Australian women into the ministry."

"It was a magnificent life, a tragic loss, but a day to commemorate and celebrate the life of one of the great modernists of the Australian Parliament."

Holt was a well-liked Liberal prime minister who, before taking the top job, had served in Canberra for more than three decades.

In addition to relaxing the controversial White Australia Policy (which banned people from emigrating to Australia if they weren't from Europe), Holt was also a strong advocate of Australia's post-war immigration scheme - which paved the way for Australia to become the multicultural melting pot it is today.

Holt was 59 years of age at his disappearance, while his body was never recovered.