The City of Launceston intended to vote on the policy at the July 1 council meeting, but this was delayed due to there being "additional information to clarify with councillors", according to an email from a council officer.

A council spokesperson said this vote was not originally intended to align with NAIDOC Week however, which runs from July 4 to 11.

Instead, the policy will be voted on at the July 15 meeting.

The lack of an Aboriginal flag on town hall was again brought to the council's attention via a public question without notice in November, and a commitment was made to develop a flags policy.

Rocelyn Ives, of the Amnesty International Launceston action group, said it was "disappointing" that the issue had not been resolved for eight months.

"It's essential. It's more than just words, it's an action," she said.

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"The voice of council is the civic voice for all of Launceston's people.

"And if we're an inclusive community, it's essential we recognise the past history by having the flag there, alongside the national flag."

At the moment, only the national Australian flag and the flag of Launceston flies above town hall.

The council has been carrying out engagement with Heritage Tasmania and the Tasmanian Aboriginal Centre, with heritage approval required for additional flag poles to be placed on town hall and Albert Hall.

Mayor Albert van Zetten said once the flags policy was approved, there would then be a council planning process to go through.

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"As the project needs to progress through both a public planning and engineering process after approval by the council, it would not have been possible for it to coincide with NAIDOC week," he said.

"The Aboriginal flag continues to fly at the city's premier cultural institution, the Queen Victoria Museum and Art Gallery, as well as at Home Point on the banks of the kanamaluka/Tamar estuary. The Torres Strait Islander flag is also flown during NAIDOC Week."

In recent years, Break O'Day and Northern Midlands councils have approved the permanent flying of the Aboriginal flag at their offices, while George Town Council has been lobbying nearby councils to place a sculpture and plaque at Batman Bridge commemorating the region's Aboriginal people.