KPMG report
This KPMG report from may gives the breakdown of the 1.2 billion - http://delimiter.com.au/wp-content/uploads/2012/06/KPMG_audit.pdf
• $1,008.0m relates to payroll operations that has and will continue to ensure that QH staff are paid on a fortnightly basis, and
• $245.5m relates to fixing the key issues and undertaking a systems analysis to determine the longer term solution for the payroll system.
The majority of the key issues appear to be legacy operational and business process practices - fairly typical of government projects I'd say.