The Aboriginal Flag is now freely available for public use with Prime Minister Scott Morrison announcing today that his government has completed negotiations with the flag's creator Harold Thomas and that copyright has been transferred to the Commonwealth.

“We’ve freed the Aboriginal flag for Australians,” the Prime Minister said.

“Throughout the negotiations, we have sought to protect the integrity of the Aboriginal Flag, in line with Harold Thomas’ wishes. I thank everyone involved for reaching this outcome, putting the flag in public hands.

“The Aboriginal Flag will now be managed in a similar manner to the Australian National Flag, where its use is free, but must be presented in a respectful and dignified way," Mr Mrrison said.

“All Australians can now put the Aboriginal Flag on apparel such as sports jerseys and shirts, it can be painted on sports grounds, included on websites, in paintings and other artworks, used digitally and in any other medium without having to ask for permission or pay a fee.”

In western New South Wales, Chairman of Murdi Paaki Regional Assembly Des Jones says the transfer of copyright on the flag is another positive step.

"It's not just a flag to fly at ceremonies and for use by government," Mr Jones told the Western Plains App.

"If people can access and use the benefits are that, like any flag it's a symbol or emblem that represents something."

"In the early days it was used as a symbol to represent the struggle of Aboriginal people, now it's more than that. It's used to acknowledge and recognise the people."

Mr Jones pointed out that even though there's still a commercial arrangement around it, especially in terms of using the official flags, banners, pennants and bunting - which are still under licence to FlagWorld - the benefits of free use in other ways will be much wider.

"Now we can have more access to it, people can use it to express pride and acceptance, even businesses can use it in the same way the rainbow flag is used, to show that they are open to welcome everybody," he said.

"It's a good sign that Australia is maturing and that takes great leadership at all levels.

"These are positive things and it's good to keep moving and addressing all the things that need addressing," Mr Jones said.

"Even at the local level we need to be brave and show courage to move forward and make the right decisions."

As part of the transfer of copyright to the Commonwealth, artist Harold Thomas will retain his moral rights over the flag.

“I hope that this arrangement provides comfort to all Aboriginal people and Australians to use the Flag, unaltered, proudly and without restriction," Mr Thomas said.

“I am grateful that my art is appreciated by so many, and that it has come to represent something so powerful to so many."

“The Aboriginal Flag design is my dreaming, intertwined with my wife’s family and mine, our ancestral belonging.," he said.

“The Flag represents the timeless history of our land and our people’s time on it. It is an introspection and appreciation of who we are. It draws from the history of our ancestors, our land, and our identity and will honour these well into the future.”

The Prime Minister also confirmed that all future royalties the Commonwealth receives from Flagworld's sale of the flag will be put towards the ongoing work of NAIDOC.

The Australian Government will provide an annual scholarship in Mr Thomas’ honour worth $100,000 for Indigenous students to further the development of Indigenous governance and leadership, and Mr Thomas himself has indicated that he intends to use $2 million to establish an Australian Aboriginal Flag Legacy not-for-profit to make periodic disbursements aligned with interests of Aboriginal Australians and the flag.