Payroll bungle to cost Qld $1.253bn: audit

An audit on the failed Queensland Health payroll system has found it will cost the state $1.253 billion.

Health Minister Lawrence Springborg revealed the outcome of the KPMG audit in state parliament on Wednesday.

The report shows $1.008 billion of the total cost was spent on operations to ensure Queensland Health staff continued to be paid fortnightly.

The extra $245.5 million related to fixing problems with the system and undertaking an analysis to determine longer term solutions for the system.

However, the total put forward by KPMG does not take into account costs associated with reimplementation or upgrade of the system or any additional fringe benefits tax costs arising from the recovery of overpayments.

Mr Springborg told parliament 56 per cent, or $374.8 million, of the basic payroll operating costs were unfunded in the former Labor government’s last budget.

The government now had to find an additional $147.6 million for unfunded repair projects, he said.

Mr Springborg said the report attributed the “abomination” to Labor’s centralised control, and lack of due diligence.

The system still can’t calculate basic leave entitlements, he said.

The report indicates more than 1000 payroll staff were required to perform more than 200,000 manual processes on an average of 92,000 forms to deliver about $250 million in salaries to Queensland Health’s 85,000 staff each fortnight.

There were 570 logged system issues, 76 of which were identified as having an impact on staff pay, the report said.

“This is a damning report,” Mr Springborg said.

“It is a shocking citation of failure and bad faith by the former government.”

Mr Springborg called on Opposition Leader Annastacia Palaszczuk to indicate why the former Labor government decided to implement the flawed payroll system.

“Taxpayers and health workers deserve answers,” he said.

“The opposition leader must help get those answers.”

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