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There is a group of five stars, and a single sixth star on the Australian flag.
The group of five stars form the constellation of the Southern Cross, a valuable navigation aid to early sailors travelling through the Southern Hemisphere.
The sixth star, situated below the Union Jack, is known as the Federation or Commonwealth star. It has seven points, with six of the points representing the six states of Australia, and the seventh representing Australia's two mainland territories as well as its numerous external (offshore) territories.
The stars mean different things, such as the big star in the bottom left is the commonwealth star as Australia is a commonwealth of the UK, and the five stars to the right hand side are from the southern constellation which are put on there for religious purposes as it represents the crux.
Each star on the Australian flag does not have six points. Below the Union Jack is the Commonwealth Star, or Federation Star, which has seven points, one for each of the six states of Australia and the seventh representing all the territories, mainland and offshore.
Each of the stars which form the constellation of the Southern Cross also have seven points, except for the smallest which has just five - for no particular reason, other than that it is smaller.
Because there is only 6 states in Australia and 2 territorys. (It also make's the southern cross)