There are six stars on the Australian flag. The five stars on the right hand side of the Australian flag represent the constellation called 'The Southern Cross'. This conste … llation is unique to the southern skies, and was a valuable navigation aid to early sailors.The seven-pointed star beneath the Union Jack is the Commonwealth star, or Federation star.ustralian Flag Meaning The smaller stars represent the constellation called the Southern Cross, visible and distinctive in Australia and other parts of the Southern Hemisphere, so it relates to Australia's geographic position.