Aussie flag etiquette mirrors US flag etiquette, which was derived from British flag etiquette:
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The Australian National Flag should never touch anything beneath it - ground, floor, water, or merchandise. When the flag is lowered, no part of it should touch the ground or any other object; it should be received by waiting hands and arms. To store the flag it should be folded neatly and ceremoniously.
Australian Flag Etiquette

As a symbol of a nation, flags should be treated with respect.