"Personally I would not have a problem with using surveillance software to monitor staff."

Hank Jongen, Centrelink general manager, said the agency isn't using one particular type of keylogging software, but an enhanced monitoring system developed over the last two years that includes data matching processes.

"Our monitoring system logs all access to customer records; for example, it logs the time, date and details of the staff member who searched and accessed the record and our improved analysis techniques then establish whether the access to the customer record was inappropriate," Jongen said.

"Inappropriate access exists when a staff member accesses a customer record without a genuine business need. For example, it is inappropriate for staff to access the records of relatives or friends, even if it's at their request.

"Centrelink staff are well aware access to customer records is monitored and of their responsibilities when it comes to dealing with sensitive customer information. Centrelink also conducts training for staff to provide them with an awareness of ethics, privacy and fraud."