The Federal Opposition will ask for clarification about a bill that would allow the Government to release the personal information of veterans, should it wish to correct public statements.

Key points: Government passes bill to allow the disclosure of protected information about veterans

Government passes bill to allow the disclosure of protected information about veterans Federal Opposition had supported bill, but now has concerns

Federal Opposition had supported bill, but now has concerns Veterans Affairs Minister dismisses criticism, says bill had undergone privacy impact assessment

On Thursday, the ABC revealed concerns that laws that quietly passed through the House of Representatives were deliberately designed to silence public criticism of the Government.

The bill appears to indicate a new push to ensure the Government has the legal capacity to publicly respond to those they believe are deliberately misleading the public.

The change of mind came after Labor referred Human Services Minister Alan Tudge to the Australian Federal Police to determine whether providing a journalist with a welfare recipient's personal information was legal.

Labor's veteran affairs spokeswoman, Amanda Rishworth, said the Opposition had supported the bill on the provision that strict safeguards were in place to protect public data.

"Saying that, what's come to light over recent days seems to be that the Government can't be trusted with personal information," she told AM.

"Therefore I will be wanting to speak to the minister in light of recent developments.

"I think I have to go back to the minister and have a conversation with him because there is now a concern, as I said, that the Government will wilfully, in their political interest, release individuals' information."

Labor senator Murray Watt shared the news on social media on Thursday night, saying: "Lost. The. Plot."

The senator had spent hours in senate estimates grilling public servants about whether it was appropriate and legal to ever release a welfare client's personal information.

Veterans' approval sought, but not necessary under bill

The legislation would give the department secretary the power to disclose otherwise protected information about veterans, provided they obtain a public interest certificate.

The secretary must also notify the veteran in writing of an intention to disclose the information and provide them with an opportunity to object.

While the department must consider the veteran's response, it can still release the information without their approval.

Dan Tehan (L) said the bill had undergone a privacy impact assessment. ( ABC News: Nick Haggarty )

Bureaucrats must comply with these requirements or they may be charged with a criminal offence punishable by 60 penalty units ($10,800).

Veterans Affairs Minister Dan Tehan dismissed the criticism and said the bill had undergone a privacy impact assessment and extensive consultation.

Labor-linked law firm Slater and Gordon claimed the amendments were "an appalling breach of privacy".

The firm's military compensation expert, Brian Briggs, said the legislation was "a gross abuse of power and insulting to members of the defence force".

"This will deter defence force personnel with serious physical and psychological injuries from speaking freely and frankly with their doctors for fear that it will be made public," he said.

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