I'm not quite sure where to start in addressing your comments, as there is quite a mouthful there. I'd advise you read through many old threads to answer much of what you're asking to fill in some of the gaps below.
There wasn't a "2012" crisis -- there has been a growing problem over the past decade of increasing graduate numbers. The increases in med student numbers starting in 2004 were in response to huge shortages that resulted from the previous ~20 years of underfunding for medical education here, but the problem now is how to train the new surge (formerly called 'the medical student tsunami', and now as the surge moves to the junior doctor level, 'the junior doctor tsunami'). But the first hurdle is how to get all the grads internship.
2012 was simply the first year that states were not able to do this on their own after about five years of being able to increase spots sufficiently to meet demand. Because int'l students are of lower placement priority than domestic students, they would be the ones without internship (all the states have affirmed their commitment to guarantee domestic students internship spots). Because int'l students are big money, and because politically and for other reasons it's better to use Australian-trained docs than to import docs from other countries to help fill continued specific doctor shortages (chiefly, rural docs), at the last moment that year, the federal government helped to fund ~100 spots in private hospitals for the express use of int'l students (aka Commonwealth Medical Internship, or CMI, spots). These spots are separate, and are offered after, the normal ballot process. There are stipulations, like you must do 4 weeks of Return of Service work in an area of need, and if you break the contract (not completing internship of doing the RoS) you are obligated to pay back the cost of your internship training (estimated up to $130k). Not much of a requirement really, but that does not include the normal restrictions for former int'l students (along with all IMGs) of what is known as the Ten Year Moratorium (which you should search for in these forums if you don't understand).
Anyway, the federal funding continued last year for another 100 CMI spots. As a result, all int'ls wanting to stay have been offered internship, with many of the new spots remaining unfilled for each of the past two years. However it is not guaranteed that this federal funding will continue. The number of grads is expected to peak after another couple of years of much smaller increases in grad numbers, so it has already been shown that Australia can physically create enough spots for everybody; the issue is where the funding to do so will come from (with other related issues, like the quality of the training grads might be expected to get in an environment with so many more junior docs vying for the same opportunities for work experience as were gotten before the tsunami, or if training in private hospitals, a new thing here, will be comparable to what's found in the public hospitals,...).
Accommodating all the junior docs for their training after internship is another issue, and is rather complex, but basically it means that much of the surplus will become general practitioners, particularly rural generalists, or potentially, many will become hospital house officers not on a training path for a prolonged period (e.g., instead of, say, 2 years postgrad to get into some of the specialty training colleges, it may take 4 years, or 4 instead of 3...).
Oversubscribing in the internship ballot is simply when more people preference (subscribe to) a particular hospital for internship than there are spots at that hospital. Since all grads in Qld preference all training hospitals in the ballot, the result is that some of those in oversubscribed hospitals get pulled out of that preference and then placed into the pool for their second (or third, or fourth...) preference. Who gets taken out of an oversubscribed hospital is currently done randomly, but this may change to some sort of merit-based system (however, it will never be the case that int'l students in Qld could get a higher priority than domestic students -- any merit-based system would occur in bands, like it does in the current system, except that the federally funded spots are only available after the normal ballot and are just for int'l students).
At any rate, please read through threads going back a couple years at least to understand some of this, and then if you have questions, be focused with your questions and ask in the appropriate thread(s).