No-one was refusing the law; they were just misusing the flag because it hadn’t been spelled out when to correctly use it.
Apart from, amongst other examples, the CP quite deliberately marching behind it.
But stick with your Menzies conspiracy theory if it makes you feel better.
No thanks, I'd rather stick with the oral histories and memoirs of former CP individuals during the 1940s and 1950s when the CP was explicitly attempting to hegemonise progressive nationalism in Australia—claiming that anti-communist motives motivated Menzies in 1953 is nowhere near a conspiracy theory. The offensiveness of the misuse of the flag certainly did not cause trouble in 1943, or 1933, or 1923. With the exception of an inverted flying of the blue ensign I noted in Hansard.
If we look into details
Hansard House 20 November 1953, Flags Bill second reading, Menzies
The bill will set out legislatively something that represents common practice and a common view in our country. It declares the Australian Blue Ensign to be the Australian National Flag. It redesignates the Australian Red Ensign to be the Australian marine flag. … I have been informed that whenever something is added to the flag, it is defaced. Therefore, there are references in the bill to defacing the flag or permitting defacing of the flag by making some change or addition.
Calwell, on the resumed second reading of 2 December 1953 has some interesting points to note in relation to the debate we have above, one which contradicts your reading of the Flag Act 1953 which is sourced to Ausflags
…Our flag was first selected in 1903 or 1904. Up to the present the Red Ensign has had significance equal to that of the Blue Ensign-
Mr Beale - That is quite wrong.
Mr CALWELL - It is not, as I shall quickly prove. The Army and the Navy, and later, the Air Force. adopted the Blue Ensign, but no act of parliament prescribed that the Blue Ensign was the official or national flag of Australia. It is well that at this time, 53 years after federation, we should decide to recognize the Blue Ensign as the national flag.
Drummond, of the Country Party for New England reiterates the novelty of declaring a National flag in the second reading. (Calwell and Drummond both of course had the parliamentary privilege to lie; but both came from opposite sides of the house, and would have been roundly criticised in the house for such a lie).
In the Senate, McLeay notes in the second reading the widespread use and public sentiment for the red ensign.
However, earlier Drummond may have mislead parliament inadvertently, as he asked a probing question of Ming in 1950 regarding the "official flag of the Commonwealth" being the blue ensign, and the red ensign being the merchant flag. This would however mean that Ming also mislead parliament on this occasion—but only if we are to take the official flag of the commonwealth being identical with the "national flag".
Calwell, in question time in 1949 in relation to immigration, refers directly to the red ensign as the Australian Flag.
The confusions of members of the house didn't greatly affect anyone, until 1950, when Ming gets a dorothy dixer about the blue ensign. Prior to this, the major debates about the flag I noted were attacks on Calwell for dishonouring the union jack.