Stuart's arrest divides the community and scandal is brewing over Michael and Lilian's love affair. Kate nurses Wolfie back to health but he is deeply depressed by the forthcoming hearing. Michael tries to reach some understanding with Wolfie. To avoid dismissal Lilian takes a job out of town and Max tries to hide the truth about Wolfie from Eva.

The court finds Stuart has a case to answer and sends him for trial. Michael goes to Lilian and she urges him to make peace with Wolfie, but Wolfie disappears mysteriously. A strike is threatened and Molly pressures the Authority to improve the worker's conditions. Max continues his letters to Eva compounding the lie.

Michael stands by Stuart as he is found guilty and sentenced to five years imprisonment. Molly and Michael have problems to resolve with the lease while Michael organises opposition to the Authority after cattle die due to their negligence. Max excitedly reveals that a close friend is arriving from Germany.

In an effort to get closer to Max, still under suspicion for Wolfie's disappearance, Bernie asks him to help in his efforts to rid the camps of their criminal elements. Kate and Bernie go to Island Bend and end up in trouble, spending the night in the bush together. Eva arrives from Germany and is devastated to discover that Wolfie is missing.

Max tells Eva what Wolfie was really like but Eva doesn't want to hear. The men are being pushed day and night and accidents on the Scheme are not infrequent. Kate is shocked to learn that Eva and Wolfie are married. Jack shocks the family when he announces he is putting the hotel up for sale.

In the series finale, Eva forgives Max but decides to return to Germany; Alf resigns from the Authority; Michael visits Stuart in jail. A love from the past returns shocking Eva and Kate. Lilian and Molly settle their differences and Stuart surprises Michael with a special Christmas call.