<Li> the Union Flag occupying the upper quarter next the staff; </Li> <Li> a large seven - pointed white star (six representing the six states of Australia and one representing the territories) in the centre of the lower quarter next the staff and pointing direct to the centre of St George's Cross in the Union Flag; </Li> <Li> five white stars (representing the Southern Cross) in the half of the flag further from the staff . </Li> <P> The location of the stars is as follows: </P>

What do the five stars on the australian flag stand for