Chief executive Bob Jarvis said when the war memorial was moved one flag pole was installed to replicate the original site.
He said flying the Australian national flag on Anzac Day was in keeping with Returned and Services League protocol, and was what most local councils did.
�Our commitment to the Aboriginal community should not be questioned,� he said.
�We have four flag poles on Old Perth Road and we fly the Aboriginal and Torres Strait Islander flag, we have a reconciliation action plan, we have one of the largest Naidoc Day celebrations and we have a reconciliation walk to Ashfield Reserve.
�Next year we will fly the Australian national flag, state, Aboriginal and council flags on the four poles on Old Perth Road on Anzac Day.�
RSL WA State War Memorial deputy warden Geoff Simpson said the indigenous or Torres Strait Island flags were flown only during ceremonies related to indigenous commemorations.
�Most local war memorials have only one pole and this should only ever have the Australian flag on it,� he said.
�If it had two poles, it is up to the organisers what additional flag they fly.
�The idea that Australians fought under one flag is very appropriate.�
The Town of Bassendean spent almost $500,000 to move the memorial, which was unveiled ahead of Anzac Day.