The Royal Australian Navy have made a massive spelling blunder on their uniforms, with our country name misspelled on their badges.

The badges worn by officers serving in the Middle East, produced by a Tasmanian badge company, has an extra "l" in Australia emblazoned on their logo.

According to a 7News exclusive report, the badges were produced offshore in a Hong Kong factory where the mistake was made.

"To have a badge on their upper arm that misspells our country ... it doesn't get any worse than that," Shadow Defence Minister David Johnston said.