In 1971, Harold Thomas who is an Aboriginal and an Arrente artist, designed the Aboriginal flag. He noticed that at campaigns, which were for fighting for Aboriginal people's land rights, the number of non-Aboriginal people's signs dominated over the Aboriginal people's banners. He said, "We need a common symbol to march with, as blacks together in unity, and something we could be proud of." (Northern land Council, 2000).

The purpose of designing this flag was to have a sign that displayed Aboriginal identity. The gold represents the sun, which the Aboriginal people believe to be the giver of life, the black represents the Aboriginal people, and the red represents the land and their spiritual connection to the land.

It was first flown on 12 July 1971 on National Aboriginal Day in Victoria Square, which is in Adelaide. In 1972, the Aboriginal people and the Torres Strait Islanders accepted the flag nationally when it was raised over the Aboriginal "Tent Embassy", situated outside of the old Parliament House in Canberra.