The Aboriginal flag will fly permanently above the Sydney Harbour Bridge by the end of the year with the NSW Government commiting $25 million to installing a third flagpole on the landmark.

The flag has previously joined the Australian and NSW flags on Sorry Day, NAIDOC Week and Reconciliation Week.

The announcement comes in the lead up to Tuesday’s NSW State budget said to include $401 million investment towards Closing the Gap initiatives.

NSW Premier Dominic Perrottet said the decision was an important gesture in bringing “unity to our country”.

“Our Indigenous history should be celebrated and acknowledged so young Australians understand the rich and enduring culture that we have here with our past,” he said.

“We are making significant investments, adopting new approaches and taking practical steps to Close the Gap and improve outcomes for Aboriginal people across NSW.”

Speaking at a press conference on Sunday Mr Perrottet expressed his surprise at the change taking so long.

“I’ll go to Bunnings myself and climb up there and put the poll up.” he said.

The Premier had previously questioned a two-year timeline tabled for the installation of a third flag pole, and in February announced plans to bring the addition forward.

NSW Aboriginal Affairs Minister Ben Franklin said the move acknowledged Aboriginal people and culture.

“I am so excited we are one step closer to the Aboriginal flag finally being flown on the Sydney Harbour Bridge permanently,” he said.

“We are incredibly proud to be working in partnership with Aboriginal stakeholders on both symbolic and practical reconciliation.”

The NSW Government will continue engagement with Indigenous stakeholders in the lead up to the development.