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On its own, it doesn't really have a meaning. It is symbolic for the fact that the Southern Cross, a constellation only visible in certain latitudes of the Southern Hemisphere, was crucial in navigation for early ships. The Federation of Australia occurred for a number of reasons, among which was a strong sense of nationalism that pushed for an Australian Identity. When it came to choosing the flag, the people did not want to completely disregard former ties with Britain, so the Union Jack was retained. However, the southern cross was a symbol for Australia, along with the seven-pointed "Federation star".

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