An Australia Day T-shirt pulled by Aldi amid claims of ‘‘racist’’ branding had been approved by the federal government.

The discount supermarket had been criticised for a range of promotional T-shirts branded with ‘‘AUSTRALIA EST 1788’’ logos, advertised online.

The design sparked an online clamour with people taking to social media to label the range racist and culturally insensitive to Australia’s indigenous people, who inhabited the continent for tens of thousands of years before the arrival of the First Fleet from England in 1788.

The seven designs had been approved by the Department of Prime Minister and Cabinet in July 2013, under strict guidelines regarding products bearing the image of the Australian flag.