1986 in Australia

Incumbents

• Monarch – Elizabeth II
• Governor-General – Sir Ninian Stephen
• Prime Minister – Bob Hawke
• *Opposition Leader – John Howard
• Chief Justice – Sir Harry Gibbs

  State and Territory Leaders

• Premier of New South Wales – Neville Wran, then Barrie Unsworth
• *Opposition Leader – Nick Greiner
• Premier of Queensland – Sir Joh Bjelke-Petersen
• *Opposition Leader – Nev Warburton
• Premier of South Australia – John Bannon
• *Opposition Leader – John Olsen
• Premier of Tasmania – Robin Gray
• *Opposition Leader – Ken Wriedt, then Neil Batt
• Premier of Victoria – John Cain Jr.
• *Opposition Leader – Jeff Kennett
• Premier of Western Australia – Brian Burke
• *Opposition Leader – Bill Hassell, then Barry MacKinnon
• Chief Minister of the Northern Territory – Ian Tuxworth, then Stephen Hatton
• *Opposition Leader – Bob Collins, then Terry Smith
• Chief Minister/President of the Legislative Assembly of Norfolk Island – David Buffett, then John Brown

  Governors and Administrators

• Governor of New South Wales – Sir James Rowland
• Governor of Queensland – Sir Walter Campbell
• Governor of South Australia – Sir Donald Dunstan
• Governor of Tasmania – Sir James Plimsoll
• Governor of Victoria – Davis McCaughey
• Governor of Western Australia – Gordon Reid
• Administrator of Norfolk Island – John Matthew
• Administrator of the Northern Territory – Eric Johnston

  Events

January

• 2 January – A state funeral is held for former Governor of Victoria Sir Henry Winneke at St Paul's Cathedral, Melbourne.
• 3 January – Federal Opposition Leader John Howard introduces a four-point plan to reduce interest rates.
• 4 January – A tanker driver is killed instantly when his truck overturns in Aspen, New South Wales, releasing clouds of nitrogen gas.
• 5 January – Actress Lauren Bacall arrives in Sydney to star in the play Sweet Bird of Youth.

  February

• 2 February – Nurse Anita Cobby is abducted, robbed, raped and murdered by John Travers, Michael Murdoch, and Leslie, Gary and Michael Murphy at Prospect in Sydney.
• 7 February - Following Lindy Chamberlain's identification of a baby's jacket found near Ayers Rock as being similar to the one worn by her baby Azaria, her case takes a new turn.
• 8 February –
• *Elections in Western Australia and Tasmania see the re-election of the ALP in WA, and the Liberal Party in Tasmania.
• *Post-mortem results support the claim of the sister of Sally Anne Huckstep that she was murdered.
• *Dire Straits makes history in Tasmania by drawing the state's biggest audience ever for an open-air concert.
• 9 February – Lindy Chamberlain is released from prison in Darwin on licence after serving 39 months of a life sentence.
• 11 February –
• *Joan Child becomes the first female Speaker of the Australian House of Representatives.
• *More than 100 bushfires burn across the state of Victoria.
• 12 February - Ernie Bridge is elected to the West Australian Cabinet, thereby becoming the first Aborigine to become a Cabinet minister.

  March

• 3 March – The Australia Act 1986 comes into effect at 1600 AEST, granting Australia legal independence from the United Kingdom by removing the power of the Parliament of the United Kingdom to legislate with effect in Australia and its states and territories.
• 18 March - Prime Minister Bob Hawke commits the Federal Government not to raise home interest lending rates above 13.5%, despite continued pressure from the banks.
• 27 March – The Russell Street bombing takes place at the headquarters of Victoria Police in Melbourne. A police constable, Angela Taylor, is killed.

  April

• 2 April - Prime Minister Bob Hawke breaks an election promise by lifting the ceiling on home interest rates, following the banks' promise of an extra $6 million for home loans.
• 11 April - The Arbitration Commission finds that the Builders' Labourers Federation was guilty of serious industrial misconduct and the union is deregistered.
• 14 April - A second trial of Mr. Justice Lionel Murphy begins in Sydney, and lasts for two weeks, with the jury eventually acquitting him.

  May

• 14 May - Responding to the release of dismal current account deficit figures, Federal Treasurer Paul Keating makes his infamous off-the-cuff warning about Australia becoming a "banana republic".

  July

• 4 July – After ten years in power, Neville Wran resigns as Premier of New South Wales, and is replaced by Barrie Unsworth.
• 7 July – Barlow & Chambers are executed at Malaysia's Pudu Prison for drug trafficking. Prime Minister Hawke condemns the move as "barbaric".
• 16 July – An explosion at Moura No. 4 mine in Moura, Queensland kills 12 people.
• 25 July – An unusual cold dry change sweeps through south-eastern Australia, causing temperatures to plummet and bringing of snow to Hobart, isolating the city until midday. Canberra also receives snow during the early afternoon with reports of snow and sleet also occurring in the suburbs of Melbourne and Sydney.

  August

• 2 August – The painting The Weeping Woman by Pablo Picasso is stolen from the National Gallery of Victoria. The painting is found undamaged in a locker at Spencer Street station on 19 August.
• 6 August – A low pressure system moving from South Australia and redeveloping off the New South Wales coast dumps a record of rain in a day on Sydney. Resulting floods kill six people.
• 9 August – Sydney schoolgirl Samantha Knight disappears in Bondi, Sydney.
• 19 August - The Federal Budget is handed down and outlines the Federal Government's aims to slash the deficit by increasing charges and making cuts to the Public Service. New Right thinking prompts the Opposition to foreshadow even more drastic changes.
• 21 August - Labor Caucus votes 74:42 to resume sales of uranium to France.

  September

• 23 September - Federal Opposition Leader John Howard is suspended from the Australian House of Representatives for 24 hours after attacking Federal Treasurer Paul Keating for huge travel expenses incurred by claiming Sydney as his principal place of residence.

  October

• 8 October - Following three years of wage indexation, the Australian Council of Trade Unions approves a two-tier wage-fixing system.
• 21 October - The Mr. Justice Lionel Murphy saga comes to a close when he dies of cancer.
• 24 October - The last link of the national microwave telephone system is completed at Kununurra in Western Australia.

  November

• 1 November – The 1986 Queensland state election is held. Joh Bjelke-Petersen wins his final election as Premier of Queensland with his party, the National Party gaining 38.6% of the vote and an absolute majority of seats in the Queensland Parliament
• 27 November - Federal Treasurer Paul Keating is found liable to a fine of $4,000 for not lodging his tax return for 1985 and his 1986 return being overdue.

  December

• 10 December - Senator George Georges resigns from the Australian Labor Party over uranium mining and the proposed ID card.
• 26 December - Tuning into rural disenchantment, Queensland Premier Sir Joh Bjelke-Petersen contemplates the notion of entering the federal political scene.

  Arts and literature

• Elizabeth Jolley's novel The Well wins the Miles Franklin Award

  Film

• 30 April – Crocodile Dundee is released in Australia. The film will go on to become a worldwide smash hit, becoming the highest grossing Australian until 2015
• Malcolm
• The Fringe Dwellers

  Law

• Re Loubie a case involving the Queensland Bail Act and s.117 of the constitution.

  Television

• 5 January – SBS ceases VHF transmissions on Channel 0 in Sydney & Melbourne.
• 20 January – Neighbours makes its debut on Network Ten & comes to dominate the 7 pm weeknight timeslot
• February – Red Symons signs to Hey Hey It's Saturday as the show launches Red Faces
• April – The Movie Show begins on SBS
• December – The Herald and Weekly Times Ltd, owners of HSV-7 & ADS-7 are sold to Rupert Murdoch's News Limited for $1.8 billion. As News Limited owned ATV-10 at this time, HSV-7 is sold to Fairfax in February 1987 for $320 million.
• Christopher Skase's Qintex company sells TVQ-0 to Darling Downs Television, owners of DDQ-10 in Toowoomba.
• AUSSAT satellites are launched, bringing television to remote areas for the first time.

  Sport

• 16 March – Parramatta Stadium is opened. The Parramatta Eels defeat the St. George Dragons 36-6.
• 23 March – Robert de Castella is once again Australia's best finisher at the IAAF World Cross Country Championships, this time staged in Neuchâtel, Switzerland. He finishes in 14th place in the long-distance race over 12,000 metres.
• 8 June – Stephen Austin wins the men's national marathon title, clocking 2:15:59 in Sydney, while Margaret Reddan claims the women's title in 2:48:28.
• 29 June – Last game of rugby league is played at the Sydney Sports Ground. Eastern Suburbs Roosters defeat the North Sydney Bears 21-14.
• 27 September – Hawthorn defeats Carlton in the 1986 VFL Grand Final to win the 90th VFL premiership.
• 28 September – The Parramatta Eels defeat the Canterbury Bulldogs 4–2 in the lowest scoring grand final in history to win the 79th NSWRL premiership.
• 4 November – At Talaq wins Melbourne Cup ridden by Michael Clarke.
• Brownlow Medal awarded to Robert DiPierdomenico and Greg Williams
• "Aussie" was constructed and launched.

  Births

• 20 January – Kevin Parker, singer-songwriter and guitarist
• 22 February
• * Josh Helman, actor
• * Joel Brunker, boxer
• 28 January – Nathan Outteridge, sailor
• 23 February – Kate Keltie, actress
• 28 February – Tendai Mzungu, footballer
• 1 March – Kathryn Beck, actress
• 8 March – Michelle Steele, athlete
• 15 March - Jai Courtney, actor
• 19 March – Daniel Dillon, basketball player
• 20 March
• * Ruby Rose, actress, model, and television presenter
• * Dean Geyer, actor, singer and Australian Idol contestant
• 16 April – Bronwen Knox, water polo player
• 7 May – Mark Furze, actor and singer
• 28 May – Berrick Barnes, rugby union player
• 18 July – James Sorensen, actor
• 24 July - Remy Hii, actor
• 11 August – Dean Timmins, figure skater
• 2 September – Darcy Bonser, actor
• 18 September – Eloise Mignon, actress
• 1 October – Prashanth Sellathurai, gymnast
• 16 October – Peter George, cricketer
• 30 October – Adam Gibson, basketball player
• 31 October – Christie Hayes, actress
• 2 November – Lara Sacher, actress
• 19 November
• * Jessicah Schipper, swimmer
• * Brad Hill, basketball player
• 19 December – Gemma Pranita, actress
• 21 December – Davey Browne, boxer
• 27 December – Torah Bright, snowboarder

  Deaths

• 21 October – Lionel Murphy, former Attorney-General of Australia and High Court judge
• 7 November – Tracy Pew, bass guitarist for The Birthday Party