3 March - Federal Speaker of the House of Representatives Bob Halverson resigns.
8 March - New South Wales Premier Bob Carr opens the Olympic Park Station on the new rail link between Sydney and the site for the 2000 Olympics.
12 March -
The Senate votes against the Federal Government's plans to sell off the second portion of Telstra with the tied vote of Mal Colston.
The Federal Opposition alleges that Mining and Resources Minister Warwick Parer increased his ownership of a mining company during the first year of the Howard Government's office.
16 March - Prime Minister John Howard pledges a $50 million crime database investment if the Liberal Party is re-elected.
17 March -
Prime Minister John Howard terminates a radio interview in Sydney after being asked whether a GST will affect the price of heroin.
The Federal Government announces sweeping reforms to business rules to attract overseas companies to Australia.
2 April - Prime Minister John Howard pledges $270 million to keep the aged in their own homes and win back their support.
7 April – 3 June – Patrick Corporation sacks 2,000 dock workers to try to improve efficiency on the waterfront. In response, the Maritime Union of Australia stages possibly the largest industrial dispute Australia has ever seen. In the end, the jobs are restored to the workers in exchange for improvements in efficiency.
25 April - Prime Minister John Howard joins former prisoners of war in a ceremony at Hellfire Pass in Thailand, paying tribute to those who died building the Thai-Burma railway.
5 May – A gas leak aboard the replenishment ship HMAS Westralia kills four people.
14 May - Prime Minister John Howard cuts defence ties and suspends all but the most vital humanitarian aid to India after the country carries out two more nuclear tests.
18 May - The value of the Australian dollar slumps to 62 and a quarter US cents, its lowest level in 12 years. Prime Minister John Howard blames the fall in value on "poorly informed people on the other side of the world".
Prime Minister John Howard opens the new Central Synagogue in Sydney to replace the former synagogue which burnt down in 1994.
Christopher Skase's passport is seized by Spanish officials and cancelled. Mr. Skase applies for a renewal of his Spanish residency, which expired on 13th May and the Federal Government asks Spanish authorities to refuse the application, hoping it will force him home.
26 May – The first National Sorry Day, one year after the tabling of the report Bringing them Home which was the result of an inquiry into the removal of Aboriginal and Torres Strait Islander children from their families (the Stolen Generation). The day was held annually until 2004. It was renamed National Day of Healing from 2005.
27 May - The Australian Labor Party criticises the Queensland Coalition Government for its decision to put Pauline Hanson's One Nation party ahead of the Labor Party on how to vote papers for the upcoming Queensland State Election.
31 May - Prime Minister John Howard expresses Australia's concern about Pakistan's nuclear tests.
11 July - The Telstra sale bill is defeated in the Senate. Prime Minister John Howard states the full sale of Telstra is still on the agenda for the next election.
15 July - Prime Minister John Howard stands firm against a Coalition backbench revolt on the full sale of Telstra. Mr. Howard informs Parliament that the Government is committed to the Telstra sale.
21 July - Federal Treasurer Peter Costello admits he has been approached to challenge John Howard for the leadership of the Liberal Party. Talk of the challenge overshadows a Cabinet meeting in regional Victoria.
22 July - The Federal Government bows to the mounting pressure from backbenchers and rural voters by placing a 49% cap on the sale of Telstra.
26 July - Premier Bob Carr promises to help the victims of flooding in Narrabri, Wee Waa and Gunnedah. The damage bill is expected to top $100 million.
13 August - The Coalition Tax Reform Package is launched and includes a 10 percent GST with the proceeds to be distributed to the states. Income tax will be lowered and the wholesale sales tax abolished, along with certain taxes on financial transactions.
29 August – The Liberal Party government of Tony Rundle is voted out in Tasmania & replaced with an ALP government of Jim Bacon.
23 September - Federal Opposition Leader Kim Beazley launches Labor's election policy at the Brisbane Convention Centre, promising funding to a new jobs plan. Prime Minister John Howard dismisses Mr. Beazley's job target as unrealistic.
13 March – First day of the Australian Track & Field Championships for the 1997–1998 season, which are held at the Olympic Park in Melbourne, Victoria. The 10,000 metres was conducted at the Zatopek Classic, Melbourne on 18 December 1998. The men's decathlon event was staged at the Hobart Grand Prix on 21 – 22 February.
12 July – Greg Lyons wins the men's national marathon title, clocking 2:17:00 in Brisbane, while Lisa Dick claims her second women's title in 2:36:54.