The NSW government says Optus will reimburse licence-replacement fees for customers who have been caught up in the company's massive data breach.
Minister for Digital Government Victor Dominello confirmed Optus would "absolutely" foot the bill for customers to replace their NSW drivers licences if they have been affected by the cyber attack.
"It's a $29 replacement fee but that will then be reimbursed by Optus," he said.
"Optus will communicate with their customers on how they'll actually go about that."
The personal data of about 10 million current and former Optus customers was compromised last week when hackers launched one of the biggest cyber attacks in Australian history.
The attack resulted in the names, dates of birth, phone numbers, email addresses and passport and licence numbers of millions of customers being leaked online.
In a statement, an Optus spokesman said it would be reaching out to impacted customers requiring a licence change in the coming days.
"Optus will be providing a credit covering the cost of the replacement for customers who have been advised that they need to change their licence," the statement said.
"We are in discussion with other jurisdictions and departments to support Optus customers who have been impacted."
Customers are reporting long queues at some Service NSW centres as people affected by the data breach scramble to replace their licences.
Bridget Kennedy told ABC Radio Sydney she had been queuing at the Chatswood branch of Service NSW since early this morning.
"I'm getting mixed messages, I feel sorry for the staff actually."
Ms Kennedy said she had received conflicting information after being informed by Optus that her identity documents had been compromised.
"I put in a police report number, which I had to do, I've come in here (to Service NSW) and they're saying now they can't do it.
"They're saying you can't get a new licence number, I know that's not correct, and they're saying you have to make an appointment through ID Support NSW, which I rang yesterday.
"It's crazy, the staff are confused, it's a mess."
Mr Dominello said that anyone needing a replacement licence in NSW can apply online and get a new card number issued instantaneously, while a new plastic card would be sent out within 10 business days.
"If somebody has access to your drivers licence … they could open up various accounts in your name, they could re-direct mail in your name," he said.
"It's actually quite significant for those who have been significantly impacted and that's why we have to get on top of this ASAP."
However, he has advised customers to wait until they hear from Optus about whether their personal data has been compromised.
"The best thing to do is wait until you get confirmation from Optus, because they will tell you whether you need that credential re-issued," he said.
Mr Dominello said the data breach highlighted the need for an overhaul of Australia's data and privacy laws.
"This is a massive wake-up call for the whole country," he said.
"I think we overshare information in the 21st century — when I go to hire a car why do they need to know my date of birth, my address, my wet signature?
"All they need to know when I hire a car is that I'm authorised to drive a car."
Optus said on Monday that it had sent email or SMS messages to all customers whose ID document numbers were compromised because of the cyber attack.
