The Government has introduced new rules for Centrelink and MyGov services for hundreds of thousands of Aussies after failing to anticipate demand.

A man has made headlines for his generosity, after handing out $100 bills to people queued outside Centrelink in Melbourne’s Box Hill.

The 62-year-old man – dubbed “Pete the generous” – said the sight of the queue and the sheer number of people that needed help left him trembling.

“I thought, we’ve got to start doing something about this,” Pete Darmos told 7 News.

The big-hearted Melburnian from Balwyn North rushed to his nearest bank and withdrew the maximum – $10,000 – to distribute.

“I started at the back of the queue and then basically handed everybody a $100 note,” he said.

“There were tears and disbelief. $100 is not a lot of money, but four or five bags of food meant a lot to these people.”

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Pete’s one of many who’ve been forced to close their businesses – his happens to be a local cafe in the city. He also had to let go his 12 employees.

Still, he found time to help jobless workers queued for Centrelink payments that may not come in until next week.

“These are all innocent people with no means to put some bread on the table for their family,' he told 3AW on Friday.

“I couldn't stand to see my kids fed and others starve. This is a tragedy of profound proportion,” he said.

Mr Darmos, whose family emigrated to Australia from Greece, has urged other Australians to donate (if they can afford it) to help workers whose industries have been hit hard by the pandemic.

“This country has been good to me, and my heart goes out to these people who are really suffering,” he said.

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Mr Darmos’ generosity comes as Australians have been told to brace for “businesses to close” and “jobs to be lost”.

Millions are expected to be plunged into unemployment as result of the looming recession, while the national shutdown to formalise social distancing measures has left tens of thousands without work.

JP Morgan has predicted the nation’s economy in the second quarter to retract by nearly 10 per cent which it says would lead to an unemployment rate of 11 per cent.

This highlights the uncertainty surrounding the potential blow to the workforce but, whatever figures are considered, the shock to the Australian economy is going to be substantial.

The grim predictions explain the long lines snaking from Centrelink doors across the country – a reality that the Prime Minister couldn’t ignore.

“For most Australians, (2020) is going to be their toughest year,” Prime Minister Scott Morrison said in an update on the COVID-19 pandemic on Tuesday night.

“Australians who have lost their jobs, lost hours of work, businesses that have been forced to close their business – these are heartbreaking events in our nation’s history and story.”