19 January – Federal Sport and Tourism Minister John Brown steps down for apparently misleading Parliament over his role in the tendering process for Brisbane's Expo contracts on 10 December 1987.
5 February – New Liberal Party President, entrepreneur John Elliott, states publicly that the Liberals lack strong leadership and had not deserved to win at the previous election.
19 March – Nick Greiner and the Liberal Party win the 1988 New South Wales state election in a landside, removing the ALP government of Barrie Unsworth. Greiner's Coalition of 39 Liberals and 20 Nationals wins 49.5% of the vote in the enlarged 109-seat House, leading comfortably over Labor with 43 seats and 7 others. Labor suffers a further fall of 10% in its vote. National Party leader Wal Murray becomes Deputy Premier of New South Wales.
30 April – World Expo 88 opens in Brisbane, Queensland. The exhibition runs for 6 months hosting pavilions from over 70 countries and thrusts Brisbane into the international spotlight.
6 June – 10 June – The Australian Labor Party's biennial conference in Hobart sees the left faction defeated on the divisive issues of uranium mining, privatisation and tertiary education fees.
3 August – Federal Opposition Leader John Howard's draft One Australia policy taps latent concerns over Asian immigration and sparks damaging debate on this issue within the Coalition.
17 August – Foreign Minister Bill Hayden is announced as the next Governor-General. In the subsequent ministerial reshuffle, Gareth Evans receives the Foreign Affairs and Trade portfolio, Ralph Willis receives Industrial Relations, and Robert Ray receives Immigration, Local Government and Ethnic Affairs.
3 September – The 1988 Australian referendum is held and propositions on 4-year parliamentary terms, recognition of local government, religious liberty and other issues are defeated with 60% of the electorate voting against them.
4 December – In Sydney, Federal Opposition Leader John Howard launches a statement of principle and general policy entitled Future Directions which reveals that a Liberal government would encourage the introduction of external school examinations, establish a National Standards Monitoring Program for schools and did not rule out the introduction of a consumption tax after the first term of a Coalition government. Based on intensive research in 20 marginal seats, the statement also speaks nostalgically of traditional values.[1]
24 December – Arbitration Commission President Barry Maddern finds that the Remuneration Tribunal's November recommendations for a 29% increase in MP's salaries and allowances are justified.
6 March – Brisbane Broncos play their first match, defeating defending premiers Manly 44–10 at Lang Park.
11 June – In the 100th rugby league test between the two nations, Australia defeat Great Britain 17-6.
28 June - Australia retain the Ashes by defeating Great Britain in the 2nd Test of the 1988 Great Britain Lions tour.
17 July – Australia thrash reigning World Champions Argentina 4–1 in the Bicentennial Gold Cup, at Sydney Football Stadium.
24 July – Patrick Carroll wins the men's national marathon title, clocking 2:10:44 in Brisbane, while Karen McCann claims the women's title in 2:44:05.