The Australian Red Ensign is the civil ensign of Australia, the flag of nationality flown by Australian registered ships. It is a red version of the national flag, which is mainly blue. Both flags resulted from the Commonwealth Government's 1901 Federal Flag Design Competition which required two entries: an ensign for Commonwealth Government use and another for the merchant navy. The winning design for the merchant ensign was based on the traditional British Red Ensign and featured the Southern Cross and Commonwealth Star. Devices The Australian Red Ensign is a predominantly red version of the Australian National Flag, using the same shade of red as the Cross of Saint George which is part of the Union Jack present in the canton. Maritime Ensign Following federation in 1901, the topic of national colours for British ships registered in Australian ports was addressed by the Navigation Act, which provided that such ships (i.e., civilian ships) should wear the Australian Red Ensign. Technically private non-registered vessels were liable to a substantial fine if they did not fly the British Red Ensign as they were not formally covered by the Navigation Act. However, an Admiralty Warrant was issued on 5 December 1938 which authorised such non-registered vessels to fly the Australian Red Ensign, too. Australia enacted fully domestic shipping legislation in 1981. The Shipping Registration Act of 1981 reaffirmed that the Australian Red Ensign was the proper "colours" for Australian registered ships and that smaller (i.e., less than 30 tons) pleasure and fishing craft could fly either the Australian Red Ensign or the Australian National Flag but not both at the same time. History The Commonwealth Government ran the Federal Flag Design Competition in 1901 to find two designs for Australian flags: one for official Commonwealth Government use and another for the merchant navy. After being submitted to King Edward VII for approval the competition-winning design which featured a southern cross with nine, eight, seven, six and five points respectively was standardised by the British Admiralty with the number of points on the four biggest stars of the southern cross set to seven, ostensibly to improve ease of manufacture. The original variety of points was an indication of the relative brightness of each star as it appeared in the night sky. In 1908, the current Commonwealth star of seven points replaced the earlier six-pointed star. In the decades following federation the Red Ensign was