The death of a local schoolteacher leads Sarah to a shocking discovery. Elizabeth's new attitude toward life stuns the family. George takes charge of James and Olivia's separation as they struggle to move on with their new lives.

As Sarah faces Sgt. Taylor's strong suspicion that she murdered Milly, Regina weaves another web to keep George trapped. James is rattled a confession from Olivia.

When Sarah and Roy go to Sydney to deal with Sgt. Taylor's accusation, Sarah finds more than she bargained for. Henry's confession forces James to sort out his true feelings.

Elizabeth takes advantage the chance to battle Regina and Sir Richard at the Prime Minister's dinner. Harry helps Sarah heal some deep emotional scars, and George restores order at Ash Park.

Sarah, Elizabeth, and Anna devise a plan to destroy Regina. James shares his feelings with Henry --but will Harry's return spell trouble? Regina initiates a dangerous new strategy to get rid of Sarah.

Sarah tells George that she invited Harry to stay with her and Roy, a decision that angers Elizabeth, who can't help but interfere. Elizabeth and Sarah become adversaries again over whether or not Harry should remain in Inverness.

Jack and Carolyn's honeymoon is interrupted by the revelation that Sir Richard is targeting Douglas's refuge for needy veterans. As George prepares to leave for Canberra, Sarah asks the Bligh family to keep away from the birth to avoid scandal.

After a long and difficult labor, Sarah gives birth, but the baby's future remains uncertain. Carolyn tries to follow Sarah's wishes and prevent Elizabeth from telling George the news.

Elizabeth calls Anna and Gino back from Italy to set her plan against Regina in motion, but Gino disapproves of her using Rose. George and Regina return to Inverness from Canberra, unaware of the trap Elizabeth has laid.

The Bligh family lets Regina think she's won, while George carries out his own plans. James and Harry attend the party in Sydney with Henry's friends, but Harry feels left out. Gordon resumes his stakeout on Sarah.

With Regina on the run, George and Jack press Rose for information on her whereabouts. As tensions come to a head, Regina and Sarah face a desperate confrontation.

As the Blighs celebrate Christmas and Hanukkah, Jack slips further into depression, until a conversation with Frank inspires him to make a courageous decision; Elizabeth sets up her maternity hospital; the family urges Carolyn to reach out to Jack.

James sees a psychiatrist who agrees to treat his sexuality, but James and Olivia's hopes of a brighter future are challenged when George arrives and confronts his son. Anna is relieved when Gino believes that she miscarried and they decide to tell their families of their intention to marry. Elizabeth's spirits are buoyed by Regina's seizure of Sarah's job application records, knowing they will help Regina dig up the skeletons of Sarah's past in Europe. But a bigger shock is in store for everyone when a dead body floats on the surface of the river near Ash Park.

Sarah is supported by the community in her grief. With her family in tatters, Elizabeth refuses Douglas' offer of a deeper friendship. As their romantic dream finally shatters, Anna returns to Ash Park. Regina takes extreme measures to further ensnare George.

On the eve of Remembrance Day, George is asked to host a Japanese trade delegation. Knowing how the community will feel, George asks Jack to come to the reception in the hope that the approval of a former Japanese POW might help deal with any ill feeling, but Elizabeth is concerned about Jack's ability to handle the situation.

Newly discharged from hospital, Elizabeth is unimpressed by the proprietorial way Regina is behaving towards George and asks her to leave. With tension in the house and James's secretly growing feelings for Harry, Olivia and James agree that the best chance for their family lies in the city. After learning about his affair with Sarah, Elizabeth demands George end it, but he refuses. Meanwhile, Anna tells Gino she is expecting.

Regina sets out to destroy any chance of happiness for George and Sarah. Elizabeth takes a remarkable step towards happiness while Anna questions her relationship with Gino. Carolyn finally confides in Jack just as his career is on the line and James and Olivia reaching breaking point.

James hides in a lie, blaming the suicide attempt on unrequited love for an unsuitable woman in England.

Jack and Sarah discover that Bill Gregory, a former army mate of Jack’s, has hanged himself in his kitchen.

Anna and Gino’s romance continues to blossom prompting him to propose.

Anna asks her Aunt Carolyn for help in procuring contraception for her and Gino.

Elizabeth is rushed to hospital where Jack confirms she has suffered a heart attack. Jack tenderly looks after Elizabeth as she recovers. Heavily sedated and rambling, Elizabeth comes close to revealing a secret of her past. Elizabeth's frail health sees Anna and Gino decide to postpone telling their families about their relationship, but when Carla finds Anna's contraception hidden in her room, she becomes suspicious and confronts Gino.

George is delighted when Sarah agrees to marry him, but when Elizabeth discovers her threat to disinherit George has backfired, she resolves to take a different approach. Meanwhile, Anna encounters complications with her pregnancy.

Elizabeth's desire to make her life meaningful finds her meeting a charming gentleman. Gino outlines his dream to Anna of becoming a successful wine maker, and a charismatic painter comes to Ash Park and develops a rapport with Olivia. Sarah is in Sydney, on a quest to find a doctor who will terminate her pregnancy, keeps the truth from Aunt Peg

Olivia is shaken by Lloyd's kiss and Anna realises that Gino's dream means a lot of hard work. Sarah crosses path with a young girl at the abortion clinic, who is later brought to her for help. Elizabeth begins work at Douglas' refuge.