The Red Ensign was the only flag private citizens could fly on land.[45] By traditional British understanding, the Blue Ensign was reserved for Commonwealth Government use, with State and local governments, private organisations and individuals to use the Red Ensign.[45] As an example, the explorer Sir Hubert Wilkins planted a Red Ensign in Antarctica.[10] The official painting of the opening of Australia's new Parliament House in 1927 shows Red Ensigns and Union Flags being flown.[45][50] However a lithograph by an unknown artist featuring only Blue Ensigns has since emerged. As the commissioned artist, Septimus Power may have chosen red for dramatic effect or because it was the colour the public was expected to use.[51]
Despite executive branch proclamations as to the respective roles of the two red, white and blue ensigns there remained confusion until the Flags Act 1953 declared the Blue Ensign to be the national flag, and the Red Ensign as the flag of the Australian mercantile marine.[52][53] Red ensigns continued to be used in Anzac Day marches into the 1960s.[54]
Technically, private non-commercial vessels were liable to a substantial fine if they did not fly the British Red Ensign. However, an Admiralty Warrant was issued on 5 December 1938, authorising these vessels to fly the Australian Red Ensign. The Shipping Registration Act 1981 reaffirmed that the Australian Red Ensign was the proper "colours" for commercial ships over 24 metres (79 ft) in tonnage length.[55]
As a result of the declaration of 3 September as Merchant Navy Day in 2008, the red ensign can be flown on land alongside the Australian national flag on this occasion as a matter of protocol.[56]