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19 January – A hailstorm accompanied by severe winds sweeps through Brisbane and surrounding areas, causing an estimated $110 million of property damage. Subsequently, around 95,000 insurance claims are lodged.
28 January – Victorian Premier John Cain's support for reforms to the Upper House rather than its abolition defuse this as an election issue.
29 January – Federal Cabinet endorses an earlier decision to provide refuelling facilities to United States aircraft monitoring MX missile tests in the Pacific. Strong anti-American and anti-nuclear reaction soon forces Prime Minister Bob Hawke to withdraw the offer.
1 March – Uniform credit legislation is introduced in New South Wales, Victoria and Western Australia.
2 March – The ALP government of John Cain reelected in Victoria for a second consecutive term with 47 seats and over 50% of the primary vote. A tied result in Nunawading, decided in Labor's favour, is later declared void by Justice Starke.
4 March – At the request of the United States, the Federal Government cancels the annual meeting of the ANZUS Council.
21 March – The Queensland Government enacts harsh anti-strike legislation.
23 March – Two electric trains collide head on just north of Trinder Park railway station in Woodridge, Queensland at 6.47 a.m. Two people including a train driver, are killed in the smash, and another 28 people are injured.
20 April – The Duke of Kent officially opens the Queensland Performing Arts Complex at a gala Royal Festival Performance. The opening celebrations – which include a parade, the launching of masses of balloons, fireworks and a fly-over by RAAF aircraft – are scheduled to continue for almost a month.
26 April – Mr. Justice Lionel Murphy is committed for trial on two charges of attempting to pervert the course of justice.
14 May – Federal Treasurer Paul Keating releases a mini-Budget aimed at reducing Government spending, with cuts falling mainly on defence and the unemployed.
20 May – Queensland police raid the Greenslopes Fertility Clinic, Brisbane and seize the patient files of 20,000 women. The search warrant is later ruled invalid and the files returned. Other raids are carried out on clinics in Brisbane and Townsville.[2]
30 May – At the Premiers' Conference, the Grants Commission makes cuts, especially to the Northern Territory and Queensland. Business and conservative interests praise Federal Treasurer Paul Keating as a result.
A Government White Paper presents three options for taxation.
July
1 July – 4 July – A Tax Summit is held. Federal Treasurer Paul Keating abandons his preferred Option C (a 12.5% retail sales tax) after a public outcry.
August
6 August – The merging of two retail chain operations creates Coles Myer Limited.
22 August – The Royal Commission on the use and effects of chemical agents on Australian personnel in Vietnam finds no link between the chemical defoliant Agent Orange and the health problems of the Vietnam War veterans.
21 September – At the inaugural "Light on the Hill" dinner at Bathurst, Prime Minister Bob Hawke describes privatisation as the "height of irrationality" and a "recipe for disaster".
October
October – Network Seven drops Neighbours after seven months on air, only for it to be continued by Network Ten.
3 October – Victorian Premier John Cain announces the resignation of Victorian Governor Sir Brian Murray over his acceptance of discounted air fares from Continental Airlines. The issue dragged on for several years, causing much embarrassment and recrimination.
12 October – Canon Arthur Malcolm becomes the first Aboriginal Bishop in Australia.
24 October – South Australian Ombudsman Mary Beasley resigns over much publicity over travel concessions for her partner Susan Mitchell. Her successor Grant Edwards resigns on the same day, subject to an inquiry, with Eugene Biganovsky thus becoming the third to hold the office within the one day.
13 November – Mr. Justice Paul Brereton introduces amendments to the Darling Harbour Bill, stating that the intransigence of the SSC had forced the New South Wales Government to exempt the controversial Sydney Monorail from normal planning controls and claiming that the casino planned for the site would spell the end to illegal gambling.
2 December – Federal Parliament passes the Australia Act, cutting the nation's last legal and constitutional ties with Britain.
4 December – Retiring New South Wales Local Government Minister Kevin Stewart sacks Warringah Shire Council for negligence and granting favours to a developer.
15 December – Rural discontent at soaring interest rates and falling commodity prices is symbolised by the rally in Canberra of 9,000 farmers for the court appearance of a farmer who had dumped 35 tonnes of wheat on the steps of Parliament House.
16 December – New South Wales Premier Neville Wran is charged with contempt of court by the Federal Department of Public Prosecutions in relation to remarks he had made on 28 November when the Appeal Court had ordered a new trial for Mr. Justice Lionel Murphy.
22 December – The new Victorian Governor is announced as academic and Uniting Church minister, Rev. Davis McCaughey, to be sworn in on 18 February 1986.
18 March – Neighbours premieres on the Seven Network. Six months later Neighbours is axed by HSV-7, but Network Ten bought the rights and picks up the soap and it becomes a massive hit for them.
9 June – Grenville Wood wins the men's national marathon title, clocking 2:13:37 in Sydney, while Elizabeth Patmore claims the women's title in 2:45:47.
28 September – The Essendon (26.14.170) defeat the Hawthorn (14.8.92) to win the 89th VFL premiership. It is the second consecutive premiership for Essendon.
29 September – The Canterbury Bulldogs defeat the St. George Dragons 7–6 to win the 78th NSWRL premiership. It is also the second consecutive premiership for Canterbury.
4 December – Australia are unable to undo a 2–0 deficit from the first leg and draw 0–0 with Scotland in the World Cup qualifying playoff at Olympic Park, failing to qualify for the 1986 FIFA World Cup.
