MELBOURNE, April 16 - It follows an Independent Broad-based Anti-corruption Commission investigation into corruption, the improper diversion of funds and conflicts of interest related to the scrapped "Ultranet" online learning portal.

The education department says it will establish a new register for workers to declare conflicts of interest to reduce the risk of major projects being mismanaged.

School-based employees and not just corporate staff will be required to declare any gifts and hospitality benefits they are offered, the department adds.

It comes after IBAC last year found "a disturbing pattern of improper behaviour" related to the Ultranet, an online learning portal used to link parents, teachers and students.

Department officials had a "singular preference" for IT company CSG to win the Ultranet contract, with some bureaucrats buying shares in the company beforehand.

The failed project, introduced in 2010 and scrapped three years later, cost up to $240 million even though the contract was worth $60 million.

Some senior employees were later sacked or resigned over the scandal.