The Tasmanian Parliament is recalled to debate guidelines for the Wesley Vale pulp mill.
31 January - Victorian Deputy Premier Robert Fordham resigns under pressure from the factions and Opposition over his handling of the VEDC fiasco. Roger Pescott narrowly defeats Alan Stockdale in the final ballot for the position of deputy.
February
1 February – Joan Kirner becomes Victoria's first female Deputy Premier after the resignation of Robert Fordham over the VEDC (Victorian Economic Development Corporation) crisis.
6 March – Former National Safety Council boss John Friedrich is arrested in Western Australia over allegations that he defrauded investors of $237 million.
21 March - Federal Cabinet decides to develop a third runway at Sydney's congested airport, leading to outraged protests from residents' groups and the sudden resignation from the Federal Ministry of Gary Punch whose marginal electorate of Barton bordered the airport.
22 March - The Victorian Division of the National Safety Council collapses with debts of $235 million.
April
7 April - CEO of the Victorian Division of the National Safety Council John Friedrichs is captured after 17 days on the run.
27 April - A dawn raid by the Tactical Response Group (TRG) kills innocent Aboriginal Redfern resident David Gundy and arouses community anger. An inquiry into the TRG adds to already existing distrust of the police.
May
6 May - Liberal Ian McPhee loses pre-selection for his seat of Goldstein in favour of hardliner David Kemp, amid accusations of branch-stacking and foul play.
9 May – Andrew Peacock deposes John Howard as Federal Opposition Leader and Leader of the Liberal Party by a clear vote of 44 to 27. Senator Fred Chaney is elected as Deputy Leader.
In the Harris-Daishowa affair, state Australian Labor Party General Secretary Stephen Loosley is convicted of not declaring a $10,000 donation from the wood chipping company.
Liberal candidate Robin Gray wins the Tasmanian state election, 1989. The Liberal Party secures 46.9% of the vote, while the Labor Party secures 34.7% and the Green Independents 17.1%.
16 May - Plotters of the Liberal leadership coup appear on the ABC's Four Corners programme, helping to hinder Andrew Peacock's attempts to unify the party.
18 May - At the Premiers' Conference, the Commonwealth cuts $550 million from payments, grants and loans to the states.
23 May - Victorian Liberal Leader Jeff Kennett is replaced by Alan Brown in the fifth challenge to his leadership since 1982.
23 June - Vacancies caused by the departure to federal politics of New South Wales MPs Laurie Brereton, Laurie Ferguson and Janice Crosio see Labor retain the seats of Heffron, Granville and Smithfield.
July - Interest rates on home mortgages reach 17%.
August
9 August - The Victorian Government releases its Budget, proposing further savage cuts to the public sector due to the decreasing amount of Commonwealth funding available.
22 August - The damaging 2-month airline pilots' strike over a 30% pay rise begins in earnest. Prime Minister Bob Hawke makes a crusade of resisting the claim.
23 August – All of Australia's 1,645 domestic airline pilots resign over an airline's move to sack and sue them over a dispute, following a strike.
22 September - Queensland Emergency and Administrative Services Minister Russell Cooper becomes Queensland Premier after beating Mike Ahern in his second leadership attempt. Bill Gunn remains Deputy Premier.
17 October - New South Wales Premier Nick Greiner announces a Royal Commission under Mr. Justice Lee to investigate the case of Police Chief Superintendent Harry Blackburn who had been arrested and charged with sexual offences allegedly committed over a 20-year period. After several months, it was found that he had no case to answer.
25 October - In response to the Fitzgerald Inquiry recommendations, the Queensland Government establishes two new bodies - the Criminal Justice Commission (CJC) to be headed by former NCA Commissioner Sir Max Bingham and the Electoral and Administrative Review Commission (EARC) under Tom Sherman.
November
10 November – Gaby Kennard becomes the first Australian woman to fly non-stop around the world.
One of the few successful Australian Democrats Bills is passed through the House of Representatives on the voices. It outlaws the advertising of tobacco products in the print media.
25 December - A savage storm rips through Brisbane and Redcliffe, leaving a $5 million trail of destruction. Two people are killed, around 1,000 homes are damaged and about 4,500 homes suffer loss of electric power.
12 April – Fast Forward premieres in Australia (1989–1992).
June – Neighbours introduces a new look theme song. The theme is sung by Barry Crocker when it lasted until the end of 1994.
July – Bob Shanks takes over as managing director of Network Ten due to ailing ratings & totally revamps the network, giving it the name 10 TV Australia as well as introducing a new lineup with increased game show content. Most of the new shows are axed by the end of the year.
August – Acropolis Now premieres in Australia (1989–1992).
September – Network Ten is sold to Steve Cosser, head of Broadcom Australia, for $22 million.
31 December – Phase 2 of Aggregation of Television services occurs in Orange & Wagga Wagga, with aggregation occurring in Wollongong & Canberra in March
13 March – NSWRL unveils massive advertising campaign featuring rock legend Tina Turner singing What You Get is What You See.
17 March – First day of the Australian Track & Field Championships for the 1988–1989 season, which are held at the QEII Stadium in Brisbane, Queensland.
23 July – Bradley Camp wins the men's national marathon title, clocking 2:10:10 in Brisbane, while Jan Federick claims the women's title in 2:51:30.
11 August – Canterbury Bulldogs & Canberra Raiders meet at the WACA Ground in Perth in the first NSWRL match played outside the eastern states. On the same day, it is announced that the VFL will become known as the AFL from next season.
13 August – Marconi Fairfield win the NSL with a 2–0 victory over Sydney Olympic, in the last season to be played in traditional Winter format.
24 September – Canberra upset Balmain 19-14 in extra time at the Sydney Football Stadium (now Aussie Stadium) to win one of the most dramatic & exciting grand finals ever & take the NSWRL premiership outside Sydney for the first time.
30 September – Hawthorn (21.18.144) defeat Geelong (21.12.138) to win the 93rd and indeed final VFL premiership until 1996, when the VFA would become known as the VFL.