Federal MP Sussan Ley says it would be arrogant for her to declare Indigenous flags should be added to Albury's war memorial.
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"I feel it's presumptuous of me to say 'this is what we should do', so I'm not saying that in terms of whether we fly the flag or on what occasions, but I think consultation is an important next step," Ms Ley said.
"Everyone who went to war went under the Australian flag, but we have had a long and difficult battle...in acknowledging that Aboriginal Australians weren't well recognised when they came home from war."
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Albury MP Justin Clancy also declined to give his opinion on whether the Indigenous flags should be added to the Australian and New Zealand standards at the memorial.
He said the thoughts of Aboriginal citizens and veterans were vital and "we need to be listening to their views and respecting the conversation to be had there".
Albury Council is seeking comment on the protocol, including the possibility of having Aboriginal and Torres Strait Islander flags at the memorial and outside its head office, before making final decisions next year.