21 February – Elections in the ACT re-elect the Liberal Party government of Kate Carnell. It would be the last State or Territory election that the Liberal Party have managed to form government after until the Western Australiastate election in September 2008.
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.
May – Christopher Skase's passport is cancelled & he is ordered to leave Majorca by 23 July. However, he renounces his Australian citizenship & becomes a citizen of Dominica.
5 May – A gas leak aboard the replenishment ship HMAS Westralia kills four people.
26 May – 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.
13 June – The Queensland state elections depose the ruling National Party government of Rob Borbidge & elect a minority ALP government, led by Peter Beattie. Pauline Hanson's One Nation scored 23% of the vote & 11 seats, leading to anti-racism protests & four former Prime Ministers to sign an open letter rejecting racism.
August – High levels of cryptosporidium & giardia force Sydney residents to boil their drinking water for 6 weeks.
29 August – The Liberal Party government of Tony Rundle is voted out in Tasmania & replaced with an ALP government of Jim Bacon.
25 September – A gas explosion at Esso's Longford plant killed 2, injured 8 & left most of Victoria without gas for two weeks. Hundreds of businesses were affected.
3 October – With the help of One Nation preferences, John Howard's Liberal/National coalition government is re-elected in the federal election.
1 December – The federal government rejects an attempt by UNESCO to suspend construction of the Jabiluka uranium mine pending a further environmental impact report.
December – A man posts 28 mail bombs in a Canberrapost office after losing a legal battle with the Australian Taxation Office which had been going since 1994. One of the bombs explodes, injuring two workers.
November – After 25 years, the Midday Show is axed by the Nine Network.
December – The remote Central & Eastern Australia markets are aggregated, with Imparja taking a Nine Network affiliation & Seven Central (formerly QSTV) taking a joint Seven & Network Ten affiliation.
15 March – In their first match, the Melbourne Storm upset the Illawarra Steelers 14–12 at WIN Stadium. The Storm go on to have a remarkable debut season, going within one game of the grand final.
24 April – The Kangaroos play their first 'full-fledged' international match in four years. The Kiwis spoil the party however, winning 22–16.
27 September – The Brisbane Broncos defeat the Canterbury Bulldogs 38–12 to win the 91st NSWRL/ARL/NRL premiership. It is the first premiership held under the NRL name & the last grand final to be played at the Sydney Football Stadium (now Aussie Stadium). It is also the second consecutive premiership for the Broncos, if you count their 1997 success in Super League
October – Mark Taylor equals Don Bradman's record of 334 in a test match against Pakistan. However, unlike Bradman, Taylor is not out & declares the innings closed when he reaches that score.
8 January to 17 January – The VIII FINA World Championships are held in Perth. Ian Thorpe wins his first gold medal at a major meet in the 400m freestyle. Human growth hormone was found in a Chinese swimmer's bag at Sydney Airport, resulting in her deportation.
Motor Sport
8 March - Finnish driver Mika Häkkinen wins a controversial Australian Grand Prix ahead of McLaren team mate Scot David Coulthard after Coulthard moved over and allowed Häkkinen to take the race lead in the closing stages of the race.
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.