Government Services Minister Stuart Robert is encouraging people to avoid lining up outside Centrelink offices and apply online instead, despite the website crashing on Monday.
Mr Robert has admitted he was wrong to blame hackers for bringing the MyGov website down, when it was actually overwhelmed by sacked Australians scrambling for benefits.
"I probably should have waited for the investigation before jumping the gun," he told 2GB radio on Tuesday.
"We prepared over the weekend for 55,000 ... I didn't think I'd have to prepare for 100,000 concurrent users.
"My bad not realising the sheer scale of the decision on Sunday night by national leaders that literally saw hundreds of thousands, maybe a million, people unemployed overnight."
Labor is demanding a dedicated Centrelink hotline be established to help people navigate the welfare system.
People were again queuing outside Centrelink offices on Tuesday morning, mirroring devastating scenes across the country on Monday when thousands lined up to register for unemployment benefits.
Labor social services spokeswoman Linda Burney has urged the government to set up a single phone number so people can get answers from Centrelink.
People are seen queuing outside a Centrelink office in Bondi Junction, Sydney, Tuesday, 24 March, 2020. Source: AAP
"They are scared, they are confused and they are stressed because of drastic changes to their financial situation," she told ABC radio.
"What they want is care, what they want is answers, what they want is urgency.
"Get the payments out, cut the red tape and worry about the paperwork later. People need help now."
The MyGov online portal crashed on Monday after it was overwhelmed by newly-unemployed Australians, many of whom were making their first approach to Centrelink.
Social Services Minister Anne Ruston says no one could have predicted the spike in the level of demand, even though the government shut down a number of industries to combat the spread of the virus.
"We clearly understand the distress that this coronavirus is causing," she told Nine's Today show.
The government is now appealing to people trying to register with Centrelink to hold off for a few days.
"We are asking for patience and calm ... What we saw yesterday was heartbreaking," Senator Ruston said.
There was no excuse for what happened, Senator Ruston said.
Centrelink will boost its workforce by 5000 people to deal with the influx of applicants and extend call centre hours.
But there will be fewer workers at the centres because of social distancing requirements. No pop-up shopfronts are planned.
Many families, workers and business owners have been forced to seek social security as the pandemic throws the national economy into chaos.
Senator Ruston said unless people had no phone or internet access, there was no need for them to line up at Centrelink offices.
