7 February – The Violet Town railway disaster: the passenger train Southern Aurora collides head-on with a freight train on the new Melbourne to Sydney train line. Nine people are killed.
11 November - Prime Minister John Gorton makes the most sweeping changes to the Federal Ministry since the Liberal-Country Party Coalition took office in 1949. Mr Gorton dropped three Ministers, recruited seven back-benchers to the Junior Ministry and promoted four new men to the Inner Cabinet. The biggest change was the dropping of Mr William McMahon from the Treasury. Mr McMahon, Treasurer since 1966, will be the new External Affairs Minister. The vital Treasury post will be filled by Mr Leslie Bury (former Minister for Labour and National Service). Another major Cabinet change was the promotion of the former Minister for Education and Science (Mr Malcolm Fraser) into the powerful Defence Ministry.[1]
13 November - Former Minister for Air, Mr Dudley Erwin, expresses to journalists his belief that Prime Minister Gorton's young secretary, Miss Ainsley Gotto, was responsible for him being dropped from his ministerial position on 11 November, as well as asserting that Miss Gotto severely restricted access to the Prime Minister which he and other ministers had previously enjoyed. When asked what political manoeuvre had been used to get him out of office, he replied "it wiggles, it has a fine shape and its name is Ainsley Gotto".[2]
Victorian SEC workers strike for 24 hours from midnight for the fourth time this year, causing widespread disruption to power supplies.[3]
4 May – An Australian production of the rock musical Hair opens in Sydney. Produced by Harry M. Miller, it features the debut of young American singer Marcia Hines.
27 March – 2000 Weeks (directed by Tim Burstall) is released. The film was one of the first features of the modern era in Australian cinema, although it was received poorly both critically and commercially.[4]
Television
5 March – The last episode of spy series Hunter is aired.
12 April – Carlton achieve the first double-century VFL score when they kick 30.30 (210) against Hawthorn, beating a previous record from 1931.
6 September – Richmond sets a new record VFL finals winning margin when it beats Geelong by 118 points. it is the first century winning margin in a finals match and beats the previous record margin of 88 points by Melbourne against Collingwood in the 1964 Second Semi.