I have a seperate bank account at a seperate institution that has a visa debit card attached to it, it only has spending money in it and is the only thing I use for online banking.
Works a charm.
What lancalot said, though I think they had some troubles inthe first week or so after launch.
I feel your pain iamirondude, I used to have to deal with centrelink when a student, I ended up doing most of my degree part time so I could work enough to avoid dealing with them. It seems they are there to make life hard for the honest guy.
They should have record of the phone call at least "for training purposes" Stick to your guns, insist that you informed them at the time you did. and you will pay them back when you are able.
I hope you get better from your accident soon so you can avoid them as soon as possible.