But none was more rousing than the official raising of the Australian flag on the shores of Lake Burley Griffin yesterday morning.

Canberra's serene order was highlighted under a perfect, cloudless blue sky as the clean lines of the Parliamentary Triangle and Anzac Parade were echoed in the sight of the Federation Guard and Royal Military College Band standing to attention.

Governor-General Quentin Bryce inspected the guard before the band struck up a marching tune to accompany the flag to the Canadian flag pole at Regatta Point.

Already subdued by the pomp and ceremony of the flag procession, the growing morning crowd was momentarily awed when an aerial salute by five F/A 18s flying in formation over the lake marked the flag's arrival at the top of the pole. Then followed a 21-gun salute from Rond Terrace opposite Parliament House, with cannons shooting perfect smoke rings and echoing from the walls of Australia's national institutions across the lake.

Once the formalities were over, the crowd headed to Commonwealth Park for what has become the great Australian picnic. Families and friends gathered in the shade and sampled a variety of international food.

Parents frantically applied sunscreen as children flocked to Stage 88 to watch The Wonderful World of Mr Men and Little Miss Show as part of the Children's Festival. As the midday sun beat down, Canberrans from all walks of life relaxed for the first public holiday of the year.