Technically private non-registered vessels were liable to a substantial fine if they did not fly the British Red Ensign as they were not formally covered by the Navigation Act.

However, an Admiralty Warrant was issued on 5 December 1938 which authorised such non-registered vessels to fly the Australian Red Ensign, too.

[3] After being submitted to King Edward VII for approval the competition-winning design which featured a southern cross with nine, eight, seven, six and five points respectively, and with Alpha Crucis being larger than Beta and Gamma as well as with Delta being smaller than Beta and Gamma,[4] was standardised by the British Admiralty with the number of points on the four biggest stars of the southern cross set to seven and the four main Stars of the southern cross being equal in size—ostensibly to improve ease of manufacture.

The original variety of points and sizes was an indication of the relative brightness of each star as it appeared in the night sky.

[6] In the decades following federation the red ensign was the pre-eminent flag in use by private citizens on land.

[12] The following year prime minister Robert Menzies issued a media release recommending that the blue ensign be flown at schools, government buildings and by private citizens and continued use of the red ensign by merchant ships, providing it was done so respectfully.

[18] Since 2008, 3 September has also been officially commemorated as Merchant Navy Day[19][20][21] which allows the Australian red ensign to be flown on land for the occasion as a matter of protocol.