When the Commonwealth Government announced a public competition to design a flag for the newly formed nation, the Commonwealth of Australia in 1901, entrants were asked to send a design for two flags – one for official and naval purposes and the other for Merchant ships. The two flags were announced by Australia’s first Prime Minister, Sir Edmund Barton on 3rd September 1901.

This resulted in the creation of the Australian Blue Ensign and Australian Red Ensign 

When the AUSTRALIAN RED ENSIGN is flown along with the AUSTRALIAN NATIONAL FLAG, the AUSTRALIAN NATIONAL FLAG is flown in the position of honour.

Doug Shaw, President, Flag Day Australia (FDA)
https://www.flagdayaustralia.com.au

On AUSTRALIAN NATIONAL FLAG DAY & MERCHANT NAVY DAY, 3rd September each year, both flags proudly fly on the Sydney Harbour Bridge.

We are working with Flag Day Australia (FDA) and other organisations to have both flags recognised on Australian National Flag/Merchant Navy Day.

In 2019 The Australian War Memorial (AWM) took up our request that the Merchant Navy Flag be flown with the National Flay above the War Memorial on 3rd September each year. It was also arranged that a representative of the Merchant Navy community, lay a wreath at the ‘Last Post Ceremony’ held each evening.