Go here to see the official announcement.

In its citation, the award committee comprising of Professor Gavin Brown (Vice-Chancellor of the University of Sydney), Professor Stephen Garton (Dean of the Faculty of Arts at the University of Sydney), and Susan Butler (Publisher of the Macquarie Dictionary), noted that this seems to be an Australian creation which has spread around the world, carried on by the popularity of Kath and Kim (a tv show). It made news in New York in 2005 and was one of the words nominated for the American Dialect Society's Word of the Year Most Creative section. It was pipped at the post by whale tail, the bit of the g-string or thong that shows above the waistband at the back of pants.