ANZAC Day, 1958. Sarah and Henry clash when an Aboriginal patient named Frank Gibbs brings out the hidden prejudice in society. Elizabeth's life in the city is turned upside down when Douglas begins coughing up blood. Anna finally accepts her divorce from Gino by refusing to let their story influence her next book. George visits Regina in the mental asylum and is offered a divorce. Leah, a local Jewish teenager, runs away with her non-Jewish boyfriend, Larry. Henry takes his frustration of James' absence on others. Jack realises that Carolyn is missing life in the city.

Sarah and George continue their difficult conversation about religion. Anna is sabotaging her writing career yet again while dealing with the attentions of her publisher.

Two months have passed. George meets with a rabbi in the city to discuss the process of conversion. Carolyn clocks Jack’s reluctance to change but busies herself advocating for Frank’s art.

Anna decides to reject Ed's marriage proposal and revert their relationship to one of complete professionalism. Sarah threatens Regina's life, before agreeing to go to Canberra with George. Carolyn's rape by Sir Richard Bennett is revealed to George in a letter from Regina. Elizabeth learns that Douglas' cancer has returned after he begins coughing blood again. Larry and his friends harass Regina by throwing bottles at her house and hanging a baby doll on her verandah. Jack and Douglas propose a program to Frank to help Aboriginal men who served in the war. Regina informs Sir Richard that she is back in Inverness, as per their plan.

Frank loses his paintings and his home after sadistic local football coach, Stan O'Rourke burns his house down. Regina attempts to stop George and Sarah walking into Sir Richard's web in Canberra. Jack and Henry clash over whether to tell Douglas his diagnosis, against Elizabeth's wishes. After Elizabeth disapproves her novel, Anna attempts to have it edited, but Ed refuses. Elizabeth breaks the news to Douglas that he is dying. In Canberra, the Prime Minister berates George for bringing Sarah and then, Sarah suffers a panic attack when she sees a former guard from Ravensbrück.

One month later, in the midst of the family’s grief, George must deal with a rabid Sir Richard keen on finding out George’s decision regarding the upcoming federal election.

Elizabeth's happiness in the city is soon replaced by shock when she learns that Douglas has named his supposedly deceased son Matthew in his will. Regina continues to string Sir Richard along, this time warning Henry of his capabilities. George questions whether he should sell off some land to repay his debts. Carolyn's obscure cake is a hit at the hospital fête, with Doris inviting her to join the CWA. Anna and Olivia night of fun becomes a learning experience for both of them, as Anna surrounds herself with drugs and Olivia realises it's time to move on. Sarah and George must place their faith in Regina when coming up with an idea to stop Sir Richard once and for all.

Jack decides to run for parliament as an independent after much consideration. Elizabeth welcomes Matthew into the family, as he asks Olivia to dinner. Sarah questions whether Regina's motives are genuine. Regina signs the divorce papers. Sir Richard pays Elizabeth a visit, to pay his respects after Douglas' passing. News of Dawn's pregnancy begin to spread. Henry and Jack learn that the latter's medical records have been requested by the Board. Carolyn learns the truth of Jack's addiction to pills. Three months later, Jack is seen stumbling through a paddock, drunk.

Two weeks until the federal election and Jack embraces a rigorous campaign schedule. Sir Richard’s suspicions of a subterfuge deepen. Elizabeth launches Douglas’ veteran’s fund to representatives of the Australian-Aboriginal Fellowship. With one deft strike, Sir Richard’s destruction of Jack Duncan looks complete. A body is pulled from the river.

Jack is found by Roy, intoxicated, still struggling with his public humiliation. After finding Regina's body, Sarah and Henry perform an autopsy and must inform the Bligh family that she was dead before she went into the river. Elizabeth urges George to reconcile with James. Anna and Henry's drunken night of fun turns passionate when the two have sex. Matthew proposes to Olivia, and she accepts. George loses the election to the Labor candidate. After Valda, the nurse he was blackmailing, comes forward to police, Sir Richard is arrested for Regina's murder.

Anna's world is shattered when Henry refuses to marry her after learning she cannot conceive children. Olivia and Matthew prepare to move overseas. Sir Richard is vindicated when Sarah learns that Regina killed herself to frame him and rid him from the lives of the Blighs forever. Elizabeth confronts Sir Richard one final time, armed with the fruit knife she attacked him with, and forces him out of their lives. Jack reclaims his dignity after he confronts Stan O'Rourke. Sarah, George and David visit the French Riviera, where George makes amends with James, before heading to Israel.