Federal politicians spent more than three quarters of a million dollars on flags in a six-month period, new documents show.

The latest figures on parliamentarians' entitlements published by the Finance Department show that MPs and senators spent a total of $763,391.78 on flags between July 1 2015 and December 31 2015.

Labor MP Matt Thistlethwaite spent the most on flags with a bill of almost $23,000.

Ousted Liberal MP Fiona Scott was a close second with a total of $22,827.52.

The expenditure report comes ahead of National Flag Day, which prompted Assistant Minister to the Prime Minister James McGrath to issue a statement on the "iconic national symbol".

Senator McGrath encouraged people to join the Commonwealth Flag Network as part of the celebrations on September 3.

According to the Finance Department, politicians have an entitlement to distribute flags to:

Organisations such as schools, local councils, churches and other groups "which have occasion to display the flag from flag poles on their premises"

Organisations such as schools, local councils, churches and other groups "which have occasion to display the flag from flag poles on their premises" Community organisations, Australian exchange students and humanitarian aid workers undertaking official visits or duties overseas

Community organisations, Australian exchange students and humanitarian aid workers undertaking official visits or duties overseas A family member, or an ex-service organisation representative, for use at the funeral of an Australian war veteran

The department states that there is no limit — other than the extent of the office budget — on the number of Australian National Flags, Aboriginal Flags and Torres Strait Islander Flags that can be purchased.

However no more than 50 larges flags per financial year can be presented to "private individuals".