The dancers were filmed performing ahead of the official ceremony to commission the $2 billion HMAS Supply.
“It wasn’t a good look,” Mr Dutton told Today.
“It is not going to happen again … you won’t see that at a ship launch again.”
Video posted on the ABC’s social media channels appeared to show Governor-General David Hurley, Chief of Navy Michael Noonan and Chief of Defence Angus Campbell as part of the audience during the routine.
However, a Defence spokesperson later said the dancers had actually performed ahead of the official ceremony, before the Governor-General had arrived.
General Hurley’s office also issued a statement confirming the same.
“The presentation of the video to suggest otherwise was disappointing,” the statement read.
The dance troupe, 101 Doll Squadron, also slammed the ABC edit, calling it “creepy”.
“We are very disappointed at the ABC’s deceptive editing of their video piece which cut to guests and dignitaries who were not in attendance and shooting from angles which could not be seen by the audience,” the troupe said in a statement.
“We found this very creepy and reflects more on the ABC’s camera operator and their need to sexualise these women and their dance piece for their own gratification.”
The troupe said members had come under attack online, and has deleted its social media pages.
The ABC apologised yesterday over the social media edit.
“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.