Made a big visa application payment via PayPal using my Citi Prestige card several days ago, and the payment is no longer pending.
PayPal transaction showing DIBP.
It doesn't seem to be tracked as eligible purchase though, since I still haven't received the reward points for it?
Are PayPal payments to government bodies not counted as eligible purchase?
Yes the Citi Prestige card doesn't earn points on transactions to government or semi-government entities. PayPal applies different merchant category codes (MCC) for different merchants so government payments through PayPal will still have a government MCC which means they get no points.