If the flagpole is fitted with a gaff, the Australian National Flag should be flown from the peak of the gaff, which is the position of honour, even though the Australian National Flag is then lower than the flag flying from the masthead of the flagpole. This international tradition originates from the days of sailing ships, when it was necessary to keep the flag free of the ship’s rigging.
The next position of prominence is the masthead of the flagpole, then the left-hand side of the yardarm, then the right-hand side, as viewed from the front of the flagpole/gaff combination.