5 January – Australia's only aircraft suicide attack carried out by a disgruntled former employee of Connellan Airways takes place. The Connellan air disaster claims the life of 6 people including the pilot.
7 February - 418 refugees of the Vietnam war arrived in Melbourne. The refugees, from Vietnam, Cambodia and Laos, left refugee camps around Bangkok for the largest airlift of war victims from Thailand.
8 March - The Federal Government held a reception for Queen Elizabeth II.
9 March - Queen Elizabeth II arrived in Brisbane.
13 March - The Queen was hit by a flying placard thrown by a protester in Sydney causing grazing to her left shoulder.
15 March - The former Australian consul to Timor, Mr Jim Dunn, prepared to testify to the United States Congress on Indonesian atrocities. The Indonesian Foreign Minister, Mr Adam Malik, responded by threatening that his Government would allow "demonstrations and other mass actions" against the Australian Embassy to continue if further agitation against alleged Indonesian atrocities were allowed.
The Foreign Minister, Andrew Peacock, presented a 24-page speech to Federal Parliament in which he outlined a new direction in foreign policies based on Australia's richness in a world of want. He said population and resources would be central future policies, as well as making attacks on Soviet Union military expansion.
Federal Cabinet approved an agreement with the United States for the construction of the controversial Omega navigation station at a predicted cost of $15 million.
31 March - The Conciliation and Arbitration Commission’s wage decision was handed down. The Commission indicated that it would hold an inquiry into various aspects of wage fixation. The Commission introduced a $5.70 a week increase on prices, prompting the Treasurer, Mr Lynch to say that the decision would retard the fight against inflation.
24 May - President Jimmy Carter gave the Australian Government his personal assurance that US agencies (in particular the Central Intelligence Agency) were not engaged in improper activities in Australia, an issue that had resurfaced in the espionage trial of Christopher Boyce in the United States. Fraser included this information in a statement to the House of Representatives on 24 May.
John Howard tabled a White Paper on the future of the manufacturing industry. The paper noted that despite the growth of mining, manufacturing still employed more than 1.3 million people in 1975, of whom 0.5 million had been born overseas. Manufacturing depended substantially on tariff protection and other government assistance, as well as facing ever-increasing competition from other countries, particularly in Asia.
15 June - The Gleneagles Agreement is unanimously approved by the Commonwealth of Nations at a meeting at Gleneagles, Auchterarder, Scotland. Commonwealth Presidents and Prime Ministers agree, as part of their support for the international campaign against apartheid, to discourage contact and competition between their sportsmen and sporting organisations, teams or individuals from South Africa.
22 June - The Uniting Church in Australia is formed following the union of the majority of Presbyterian, Methodist and Congregational Union churches in Australia.
Prime Minister Malcolm Fraser met President Jimmy Carter. Fraser was impressed by Carter ‘as a decisive man’ who would be ‘setting American objectives in the great humanitarian issues’. Carter undertook to consult Australia before any agreement was concluded with the Soviet Union on arms limitation in the Indian Ocean.
7 August - At the Association of South-East Asian Nations meeting in Kuala Lumpur, The Prime Minister, Malcolm Fraser, offered ASEAN leaders a package of increased bilateral aid of $250 million, as well as an extra $10 million for joint development projects, but claimed Australia could do nothing in its present economic circumstances to reduce trade barriers against their countries' products.
9 August - A board of inquiry into Housing Commission land deals is appointed by the Victorian Government with the power to investigate Cabinet decisions and to call Ministers to give evidence.
11 August - A 24-hour strike by postal staff at Melbourne's two biggest parcel centres stopped more than 25,000 parcels being handled.
15 August - Cabinet decided that Australia would negotiate bilateral safeguards agreements with purchasers covering both present and future use of the uranium. Australia would seek an understanding with other exporters on the application and enforcement of safeguards, but this would not constitute a commercial cartel to control price or quantity.
16 August - Federal Treasurer Philip Lynch presented the 1977–78 budget, with a predicted deficit of $2.21 billion. It reduced personal income tax scales from seven to three (32 per cent, 46 per cent and 60 per cent) and also provided personal tax cuts to operate from 1 February 1978.
17 August - The Federal Treasurer, Philip Lynch, addressed the National Press Club and blamed the Arbitration Commission for the lack of improvement in unemployment for its failure to restrain wages through its decisions.
21 August - Mail services returned to normal following the end of a national postal dispute.
23 August - Cabinet made its final decisions on uranium, endorsing the main findings of the Fox inquiry unless there were ‘compelling reasons’ for departing from them. It was agreed that mining could proceed, subject to environmental controls and a stringent nuclear safeguards regime. The Ranger mine could be developed without further environmental assessment, but the other two mines in the Alligator River region – Jabiluka and Koongarra – would not be approved for a considerable time. Cabinet also agreed on the staged establishment of Kakadu National Park, although the Ranger, Jabiluka and Koongarra uranium leases were to be excluded from it.
6 September - Victoria experienced a statewide 24-hour stoppage of train, tram and tramway bus services due to a strike by 20,000 public transport workers - the third strike in a month.
The Federal Attorney-General, Mr Ellicott, quits the Fraser Ministry after a row with Cabinet over the conspiracy case against former Labor Ministers. Senator Durack is appointed in his place.
15 September - The ACTU congress resolved to ban the mining and export of uranium from mid-November unless the Government agreed to hold a referendum on the issue. The referendum proposal was not favoured by the Australian Labor Party, most of whose Parliamentary leaders were inclined to support mining.
The Indian military attaché in Canberra and his wife were attacked by a member of the Indian Ananda Marga sect.
19 October - An employee of Air India’s Melbourne office is stabbed by a man who left a threatening letter, allegedly from the Ananda Marga-affiliated Universal Proutist Revolutionary Federation. Cabinet decides to review the management of explosives by Commonwealth agencies and to provide 203 more Commonwealth police for diplomatic security work, while foreign missions in Australia are urged to upgrade their security.
27 October - Prime Minister Malcolm Fraser announces that the election will be held on 10 December.