The annotation [L] explains that the rogue seven-pointed star under the Union Flag is the Commonwealth Star. It originally had only 6 points to represent the 6 states then making up the Federation: W.Oz, S.Oz, NSW, Victoria, Tasmania and Queensland. Not included as a point: Northern Territory (Darwin, Alice Springs, Uluru and a helluva a lot of desert but only 240,000 people at 0.2 per sq.km.) and ACT (Canberra, the national capital). Then in 1908, it was decided to add an extra point to the Commonwealth Star for Papua New Guinea (and a clatter of other 'colonies'). The flag was chosen by King Edward the
There is a strong republican movement in Australia which periodically erupts into a campaign to change the flag. The run up to the bicentennial in 1988, for example, saw a flurry of activity among the vexillological radicals. But the people who make decisions are old and if they didn't themselves wear an ANZAC slouch hat, their fathers, uncles and grandfathers did. So there is a lot of inertia in the system which is cemented by such patriotic stuff as National Flag Day. It's hard to change things which are cemented. Nevertheless there is a Flag Society of Australia Inc. which promotes the discussion of flaggy things in the country. They have a long list of alternative flags.