While Luke is in Sydney taking his aircraft maintenance apprenticeship course, and getting more grief than he bargained for in the process, Steve is rapidly going through farmhands unable to find one she can be happy with.
Cookie unknowingly falls for a transvestite. Luke decides to return home to Wandin Valely after his instructor tells him he's not suited to be a mechanic but should finish his education and pursue his dream of becoming a pilot.
Terence is visited by Olivia Harrison, an ex-girlfriend, and after telling him that she may have Alzheimer's disease, Olivia asks him to aid her in the taking of her own life.
John Bushell and his girlfriend Goldie Harper, both of whom are mentally challenged, proudly announce to their family and friends that she is pregnant.
Luke falls for Donna Griffiths, a director who is making a post-holocaust film in Wandin Valley. A lost fox causes panic on the set after it is released by the movie's young star.
Luke and Steve get advice on boy/girl relationships. Frank is rushed off his feet with all the comings and goings in the Valley. Lucy dreams of the end of the world.
Bob Hatfield becomes a vegetarian when he is asked to kill six sheep. The murderer is identified. Jessie fixes her father up with Anne on his birthday.
Sally Bryant's tragic death from kidney failure brings her daughter's biological father, Tim Lord, to town seeking to take custody of the young girl away from the Sally's husband Vince, the only father the little girl has ever known.
After Vince makes the painful decision to give up custody of Jane, Tim withdraws his claim. Lucy attempts to impress the CWA with her cake-making prowess but must first battle Ivan for supremacy of the kitchen.
Pilot Pete McDonald arrives in town and for Luke's 19th birthday, he is hired to give Luke flying lessons. Luke's opinion of Pete however is not all good when he see the pilot taking an interest in Steve.
Cookie inadvertently sets Bob and himself up with a pair of call girls. After receiving some disturbing news from Melbourne, Cris considers moving back home to be with his family.
Cookie and Bob dig up stolen bank loot. Cris tells Anne he loves her. Linda finds a bunch of old black and white movies and organises a screening at the lodge.
Busy with their own lives, Frank and Shirley both manage to forget their own eighth wedding anniversary. Steve's horse kicks Anne after poisoning itself.
When Helen Johnson, a woman dying of cancer, intentionally overdoses and Cris doesn't act to keep her alive, her husband Andy accuses Cris of deliberately giving her a drug overdose.
In light of recent events, which have destroyed Cris's reputation in the community and divided his friends, Cris, Jessie, and Anne announce they are to leave Wandin Valley and move to Melbourne.
Rosemary Prior, the hospital's new Director of Nursing proves to be a challenge. Luke moves out to Steve's farm after first giving her Dog to get his foot in the door.
Tony Harvey has a heart attack and dies in hospital. Terence finally gathers the courage to tell Esme that he's on a diet. Lucy sets a trap to catch her fruit-stand thief.
A single father isn't satisfied with Terence's diagnosis of his daughter's illness. Frank and Rosemary unknowingly trade barbs against one another in their anonymous letters to the editor in the Burrigan Examiner.
At Frank's suggestion, Luke uses the "wounded soldier maneuver" to illicit Steve's sympathy. Rosemary's raffle prize, her new "XL Auto", finally arrives but is far from what she had been anticipating, none the less, she names her Simone.
Tiger Kelly drives a truck into Cookie and Bob's house. Kate Bryant, a new nurse at the hospital, moves in with Steve and Luke at the farm and takes possession of the horse Steve nearly hit.
Linda Shelley returns to town and tells Terence that she is engaged. While leaving town, Linda is in a car accident which requires Harry to amputate her hand in order to save her life.
Linda's fiance arrives and also questions Harry's competence forcing Terence to defend Harry's decision. Luke tries hard to impress Libby Thomas, Matt's attractive new intern.
Alcoholic school teacher Noel Lewis tries to deal with his out-of-control son. Harry's unusual medical abbreviations cause some confusion for his coworkers at the clinic.
Luke, Steve, and Kate join Matt and Lucy on their camping trip into the national park. Kate's arachnophobia surfaces once in the great outdoors and threatens to put a damper on the entire weekend.
Itinerant labourer Kevin Nicholls and his wife Colleen, an aspiring singer, learn their daughter is deaf and not retarded as they had always believed when the girl suffers a serious fall and lands in hospital.
