It's the Australian flag, seen flying in Leura today. It was created to commemorate the formation
of the Commonwealth of states in 1901.

A lot of people don't realise it but this is NOT the flag that everyone saluted when they ran it up
the pole at the time of Federation and did not, indeed, become the official, legal Australian
national flag until 1951. Since 1906, the federation star below the Union flag quarter, has had
seven points, representing the six original states PLUS one point to represent the territories.
In 1901 it had only SIX points.

As late as 1924, the Union Jack continued to represent Australia more often than the pennant above,
which for a long while, could only be flown if the Union Jack was ALSO flown. Until 1951 the red
ensign was used as often as the blue. The red is now confined to maritime use.