A Blue Ensign defaced with the state badge; a Southern cross topped by St. Edward's Crown
In 1876, the Governor of Victoria received a draft of the colonial badges meant to be published in the Admiralty Flag Book. The badge of Victoria had been printed so that the Southern cross appeared on a shield of blue inside a disc of white. In response to his inquiry to the Colonial Office dated 10 July, 1876, the Colonial Office stated that the badge was to be used in the centre of a disc of white and the white stars of the Southern cross would not be visible. That design would be ratified in the Victoria Government Gazette of 26 March, 1877.
Amended drawings of the badge were sent to the Colonial Office on 21 March 1877. On 17 May, they were forwarded to the Admiralty who didn't realize that the badge was to be displayed on the blue shield within the white disc. Instead they printed the badge without these elements and the result was a smaller version of the Southern cross under the crown.
In the Government Gazette of 30 November, 1877 the new description was published without reference to the shield or white disc.
In 1903, following the adoption of the flag of Australia the badge would be scaled to fit the height of the fly as observed today.