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- 4 January – The search for the body of Prime Minister Harold Holt, who disappeared whilst swimming off Portsea, Victoria, is called off.
- 10 January – John Gorton is sworn in as Prime Minister of Australia after the disappearance of Harold Holt.
- 28 January – Members of English rock groups The Who and Small Faces are escorted by police from a plane at Melbourne's Essendon Airport, after the pilot diverts the flight citing the bands' behaviour.
- 1 April – American evangelist Billy Graham begins a tour of Australia.
- 17 April – A state election is held in South Australia. Steele Hall (Liberal and Country League) defeats Don Dunstan (ALP), and becomes Premier of South Australia.
- 8 April – Fluoridation of Sydney's water supply begins.
- 30 April – Jim Cairns unsuccessfully challenges Gough Whitlam for leadership of the Australian Labor Party.
- 1 May – The Duke of Edinburgh arrives in Australia for a ten-day visit.
- 5 May – Three Australian journalists are killed by the Viet Cong in Saigon.
- 21 May – Indian Prime Minister Indira Gandhi visits Australia.
- 14 June – Journalist Simon Townsend, future host of Simon Townsend's Wonder World, is granted exemption from military service after lodging a fifth appeal against his imprisonment and court martial for conscientious objection.
- 18 June – The first stage of the Warringah Freeway opens in Sydney.
- 24 June – British comedian Tony Hancock commits suicide in his Sydney hotel room.
- 2 July – Fifty students are arrested during an anti-Vietnam War protest in Martin Place, Sydney.
- 4 July – Forty five people are arrested during an anti-war protest outside the U.S. consulate in St Kilda Road, Melbourne.
- 31 July – The Premier of Queensland, Jack Pizzey, dies in office.
- 1 August – Jack Pizzey's deputy, Gordon Chalk, is sworn in as his successor until the appointment of Joh Bjelke-Petersen as Premier a week later.
- 3 August – The standard gauge rail line between Perth and Kalgoorlie is completed.
- 20 August – The National Gallery of Victoria is opened in Melbourne.
- 14 October – The town of Meckering, Western Australia, is badly damaged by an earthquake.
- 28 October – The Postmaster-General's Department decreases the number of mail deliveries per day from two to one.
- 31 October – Minister for the Army Phillip Lynch admits that Australian Army troops may have breached the Geneva Convention by using water torture during the interrogation of a female Viet Cong suspect.
- 1 November – The airline Ansett-ANA is renamed Ansett.
- 14 December – A referendum is held in Tasmania to allow the granting of Australia's first casino license to the Wrest Point Hotel. The referendum is passed.
- 31 December – MacRobertson Miller Airlines Flight 1750 crashes south of Port Hedland, Western Australia, killing all 26 people on board.
- Australia's population is estimated to have reached 12 million in 1968.
Science and technology
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Arts and literature
- 25 May – An episode of the ABC series Bellbird stops the nation when the character of Charlie Cousins (played by Robin Ramsay) dies in a fall from a silo.
- 7 February – Phillip Tahmindjis, ice speed skater
- 12 February – Nathan Rees, Premier of New South Wales (2008–2009)
- 7 April – Duncan Armstrong, swimmer
- 26 May – Rachael Sporn, basketball player
- 28 May – Kylie Minogue, entertainer
- 1 June – Jason Donovan, entertainer
- 4 June – Rachel Griffiths, actress
- 27 July – Julian McMahon, actor
- 9 August – Eric Bana, actor
- 30 September – Sharon Jaklofsky, track and field athlete
- 12 October – Hugh Jackman, actor
- 14 January – Dorothea Mackellar (born 1885), poet
- 21 February – Howard Florey, Baron Florey (born 1898), Nobel Prize-winning pharmacologist
- 24 June – Tony Hancock (born 1924), British comedian
- 31 July – Jack Pizzey (born 1911), Premier of Queensland
- 19 August – William McCall (born 1908), politician
- 28 September – Sir Norman Brookes (born 1877), tennis player
- 10 October – Gavin Long (born 1901), journalist and military historian
- 13 October – Dame Jean Macnamara (born 1899), medical scientist
- 27 October – James Hunter (born 1882), politician
- 20 December – John Jennings (born 1878), politician