The ABC has apologised after Scott Morrison blasted the national broadcaster for making it look like dignitaries watched a dance troupe during the launch of a naval ship.
The 101 Doll Squadron on Sunday performed at the official commissioning ceremony for the HMAS Supply.
An ABC report showed the dancers twerking and performing other moves, cut with shots of Governor-General David Hurley and some senior Navy officers.
But it later emerged he and the senior officers were not there during the performance.
While Defence raised eyebrows over its choice of performers, the prime minister directed his outrage at the national broadcaster.
"I am disappointed that this event was so misreported. I think that was disrespectful to the performers," Mr Morrison said.
"To suggest the governor-general or others were in attendance in that way, I think was very dishonest."
The ABC confirmed the governor-general and chief of navy were not present during the dancing.
"Our reporting team initially believed they were present both because they were shown in footage of the event and because a government MP had said that they were present," the broadcaster said in a statement.
"The video should not have been edited in that way and the ABC apologises to the governor-general and the chief of navy, and to viewers, for this error," the broadcaster said in a statement.
Mr Morrison would not be drawn on whether the act was appropriate for an official Navy function.
"Obviously defence will look at these matters and make whatever changes they wish to in the future - I'll leave that to them - but it is disappointing that Australians were so misled on that issue," Mr Morrison said.
Australia Defence Association executive director Neil James said the dancing was inappropriate for the "commissioning of a ship people might fight and die in".
"It should be done in a formal way," he told AAP.
Liberal MP and former soldier Philip Thompson previously said the routine was inappropriate.
In a statement, 101 Doll Squadron described the way they were filmed as "creepy" and motivated by a need to sexualise women.
"These are the images appearing in the media and the ABC have a lot to answer for in making us feel threatened and exploited," the statement said.
But the ABC denied the camera operator did the wrong thing.
"The ABC's footage of the dance performance was shot in a standard manner, from the same position as other parts of the ceremony," they said.
The dance troupe said the choreographic concept included blessings, ocean waves and geographical location of "where the fresh water meets the sea".
Defence pledged to continue to work with community groups, while 101 Doll Squadron says it has worked with the Navy for years.
Australian Associated Press
