21 April – Private Jacob Kovco becomes the first casualty of Australia's involvement in the Iraq campaign. The reason given initially was that his gun had accidentally discharged while cleaning his gun, although this was later retracted. It was later stated that he had accidentally shot himself while skylarking with his pistol.
17 July - Australia's largest recorded inundation caused by a tsunami hits the Western Australian coast at Steep Point.
29 July – In the face of a worsening water supply crisis, a referendum is held in Toowoomba, Queensland, Australia's second largest inland city, on the issue of using water recycled from the city's sewerage as a source of drinking water. The acrimonious campaign and emotional debate were watched closely nationwide as most other Australian cities raise water restrictions in the face of record low dam and river levels.
18 October – Linda Lavarch resigns as Queensland's Attorney-General to seek treatment for depression, after it is revealed she refused a deal to return Jayant Patel (dubbed "Dr Death" by the media) to Australia to face criminal charges.
25 October – Comments that SheikhTaj El-Din Hilaly made about women who dressed immodestly being responsible for rape are made public in The Australian. The Sheik is forced to retract such comments on 26 October.
Investigation into AWB Limited's role in the Oil-for-Food Programme, sometimes referred to as Wheatgate or Oil for wheat. The official inquiry states that AWB directors did know about the kickback payments as early as 2001 and that government ministers did not know about the kickbacks, although this was not in their brief.
2 January – The Seven and Ten Networks outbid Channel Nine and win the rights to broadcast the AFL from 2007–2011 for a record $780 million. Also around this time, Seven announce that they have won the rights to broadcast the V8 Supercars from 2007 to 2014.
30 January – Channel Nine launches a new logo, dropping the famous dots and replacing it with a stand-alone nine in a blue box.
February 2006 – Wheel of Fortune returns and starts in 2006. Larry Emdur & Laura Csortan will definitely host WOF in a partnership instead of one. On the very first episode in 2006, the car was won! The final edition of the version was screened on 28 July.
9 February – It is announced that Eddie McGuire will become Channel Nine's new CEO.
13 February – Network Ten's motto, Seriously... becomes Seriously Ten (this was Network Ten's 2001 motto), and has its new look Ten Watermark on the bottom right of the TV screens
4 June – After 12 years & a record-breaking 510 episodes, the last episode of the Seven Network show Blue Heelers goes to air.
14 September – Today Tonight host Naomi Robson is deported from Indonesia after doing a story on a West Papuan boy called Wa Wa who, supposedly, was going to be eaten by cannibals. This sparks a war of words between Seven & Nine, who ran the original story on Wa Wa in May on 60 Minutes. Naomi presents her final edition of Today Tonight on 1 December.
9 June-9 July – The Socceroos participate in the 2006 FIFA World Cup in Germany for the first time since 1974. They are drawn in Group F along with Brazil, Croatia & Japan. They come second in their group & face off against Italy. They lose to them 1–0 as a result of a controversial penalty awarded in the dying seconds of the match.
30 September – In a rematch of the previous year's AFL Grand Final, the West Coast Eagles (12.13.85) defeat the Sydney Swans (12.12.84) to take out the 110th VFL/AFL premiership. It is the first time since 1966 that the Grand Final has been decided by a margin of one point.