These are opposing patches issued for the deployment to Timor Leste, as part of Operation Satabilise in 2006. The Australian Ensign, in this case in full colour on DPCU, is now the standard for troops deployed overseas and is worn on the left upper arm. The right hand shoulder carries the unit designator patch, or in this instance, the overall Operation patch. Unit and operational patches can be issued by the defence force itself or the unit itself in many instances is given a budget to provide its own patches, often of its own design. These are often purchased from 'in-country', or local embroiders and should not be mistaken for many patches which seem to be coming back from Iraq and Afghanistan for example, which are not unit acquisitions. In other words, fakes or copies, will start to become more prevalent.. so beware.
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