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Australia's first 'Federal' flag was chosen from a national flag competition held in 1901. Initially started by the Melbourne monthly magazine The Review of Reviews for Australasia, the new Federal Government announced a further competition (Gazetted 29 April 1901) and the earlier competition entries were transferred and the prize was increased to 200 pounds. The competition attracted 32 823 entries.

The entry rules for the private competition were highly suggestive and the judging and approval process were such that only a British Ensign with a badge representative of Australia was likely to be a winner.