In the USA the flag is folded 18 times to symbolise the original 18 states of the USA. It is a very precise and specific ritual.
That ritual of course does not apply to Australia but Australian military do have a specific Australian practice.
During military funerals, families may place a flag over the body or casket however, nothing is to be placed over a flag which traditionally must stand alone.
There is a specific instruction for Australian Military personnel on the folding of the Australian National Flag into a square and the packaging of that flag into a presentation case to be given to the official mourner.
In regard to non-military funerals, according to the Australian National Flag Protocols the National Australian flag can be used to cover the coffin of any Australian at their funeral. The upper left quarter of the flag should be draped over the ‘left shoulder’ of the coffin to represent the heart, and the flag should be removed before the coffin is lowered into the ground, or after the service at a crematorium.
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