The Government's privacy watchdog wants answers from bureaucrats who provided a Centrelink client's personal details to a journalist in a bid to counter her public criticisms.

Key points: DHS says it will continue to release clients' personal information to correct media statements

DHS says it will continue to release clients' personal information to correct media statements Privacy Commissioner concerned, says agencies can only disclose personal information in "limited range of circumstances"

Privacy Commissioner concerned, says agencies can only disclose personal information in "limited range of circumstances" Public servants concerned disclosures may breach other departments' privacy undertakings

Public servants have also told ABC News they are concerned the disclosure could inadvertently breach the privacy undertakings of other departments who share their data with Department of Human Services (DHS).

Centrelink is accused of briefing a journalist about the welfare history of blogger Andie Fox, who wrote an opinion piece for Fairfax Media claiming the agency had "terrorised" her over a debt she claimed she did not owe.

That information was used to write a comment piece from the Government's perspective, which raised the prospect of Centrelink being "unfairly castigated" over its controversial debt recovery scheme.

DHS told ABC News it would continue to release personal information to correct media statements made by welfare recipients about the scheme.

"Unfounded allegations unnecessarily undermine confidence and take staff away from dealing with other claims," a DHS spokesman said.

"We will continue to correct the record on such occasions."

The statements have concerned Privacy Commissioner Timothy Pilgrim, who has encouraged anyone concerned about the security of their personal information to contact his office.

"My office is making inquiries with the Department of Human Services," he said.

"An agency may only disclose an individual's personal information in a limited range of circumstances."

Ms Fox told ABC News the disclosure was extremely distressing and she had lodged a formal complaint with the department.

The department said it was authorised to release the information according to Section 202 of the Social Security Act 1999, and the Section 162 of the A New Tax System Family Administration Act 1999.

Complaint 'could test privacy laws'

Former NSW deputy privacy commissioner Anna Johnston said she expected Centrelink bureaucrats to be more cautious with personal information.

Ms Johnston, who is now a privacy consultant, said Ms Fox's complaint to Centrelink could test privacy law.

"Our privacy laws do allow for shades of grey, with tests like 'what would be within the person's reasonable expectations?'" she said.

"If this becomes a litigated privacy complaint, it would certainly raise that 'what is reasonable?' question and potentially open up discussion of the appropriate limits to senior bureaucrats' discretion to disclose personal information about clients to the media."

Peter Sutherland, a social security law expert at Australian National University, said the disclosure appeared to be unprecedented.

"I am not aware of any previous occasion where a disclosure of this nature has been made under this provision of the social security law," he said.

"It is arguable whether the department is authorised by the statute as they claim.

"However, only the courts could determine the lawfulness or otherwise of their action, possible through a test case by Constitutional writ in the Federal Court."

Concerns other departments implicated

The DHS shares information with the Australian Taxation Office (ATO) for compliance reasons, which Centrelink's automated data-matching program relies on.

In a statement, an ATO spokesman said their data-sharing arrangements were governed by legislation and strict protocols, overseen by the Australian Information Commissioner.

"Confidential taxpayer information provided by the ATO under these arrangements can be used by another agency in accordance with the secrecy laws applying to that agency," the spokesman said.

"The ATO takes our obligation to protect confidential taxpayer information seriously and adheres by taxation confidentiality and privacy laws in all of our interactions with other government agencies, taxpayers and tax professionals."

We will continue with our compliance system: Tudge

Labor's Linda Burney moved to suspend standing orders in the House of Representatives to condemn the disclosure, calling on the Government to apologise to Ms Fox.

"This is not right, whether legally permissible or not, these are deeply unethical actions by the minister and the department," she said.

"Leaking private information is not something a Government should do lightly."

Ms Burney called on Human Services Minister Alan Tudge to release his legal advice on the decision or from the secretary of the department.

"Turning the political machinery of the department and the minister's office against private citizens is a grave act and on that no-one in this place should take lightly," she said.

Mr Tudge responded to Ms Burney by saying it was Labor who introduced the automated debt program and stood by the decision to release the information to journalists.

"There was false information which was placed in the media in a column which she herself penned," he said.

"Information was provided to correct the record in relation to those allegations."

The Social Services Minister accused Labor of supplying the media with more than 50 disgruntled welfare recipients ready to criticise Centrelink.

"Can I asked them to actually approach me or my office if they are genuinely concerned about some of these recipients, so we can actually address them," he said.

"We will continue with our compliance system because it is important to protect tax payers money."