Christina Milano, Hartley High's young new English and history teacher, has difficulties gaining control of her first class until a brawl in the schoolyard gives her the opportunity to win the respect of her students. New student Jodie Cooper catches the eye of Nick Poulos.

The banning of Jodie's incendiary rap song sparks a freedom-of-speech revolt among the students. Nick, Rose and Jodie lead their fellow students in a strike and Deloraine counters with the threat of suspensions for all those involved. The dispute is amicably settled with everyone getting their demands met — except for Con who doesn't get the soccer team he wanted, he does however get Danielle and Steve back together in time for Valentine's Day.

Christina gets approval for a school soccer team by volunteering to be its coach. Con borrows an amplifier from his uncle to allow Jodie to make a demo tape of her songs. Danielle creates some controversy when she asks to try out for the new soccer team. Rumours about Nick and Jodie's relationship make their way through the school.

Nick spends the night with Jodie, causing his parents to worry about his absence. Southgate helps Rivers deal with the cops when they want to question him about a stolen car. Chaka worries about her presence in the stolen vehicle being revealed to the police.

After leaving home following an argument with his father, Nick moves in with Jodie and begins looking for a job so that he can drop out of school. A record company executive takes an interest in Jodie and offers her a job with a rock band in Melbourne. Christina reproaches Marco for his constant unannounced and inconsiderate drop-ins, reminding him that she lives with Yola, not him.

The burden of her family responsibilities cause Chaka to behave erratically at school but attract the attention of her friends who rally to support her. Marco presses Christina to set a wedding date.

Low morale threatens to destroy the school's poorly performing soccer team until Christina seeks help from George, a former professional player, who is reluctant to become involved. Hartley's new debating team, composed of Rose, Con, and Chaka, debate another school on the merits of Australia becoming a republic.

George, Nick, and Effie are devastated by Ireni's sudden and tragic death. Steve's disclosure to Nick of information regarding his mother's car accident leads Nick down a path that ends with him assaulting a police officer.

Con tries to get new uniforms for the soccer team in time for their last match while his mother arranges for a woman to help out at the Poulos' home. Steve is forced to miss rugby training to sit an exam, a decision that upsets Southgate and threatens Steve's spot on the team.

Nick hits Jodie after she confesses to a romantic fling in Melbourne. Christina's future with Marco is thrown into doubt when he announces a promotion that will take him to Perth. A new drama teacher arrives at Hartley and quickly attracts the attentions of his female students.

Phil confides a secret about his past to Rose, who has a crush on him. Stella quits as the Poulos's housekeeper after getting in an argument with George in which he questions her decision to leave her failed marriage. Steve and Rivers are forced to work together when they are given the task of cleaning up the school yard when Deloraine catches them fighting.

Yola's attempt to advise a pregnant Nicole causes a professional crisis when the girl's condition is revealed. Rose spots Christina and Phil cavorting on the beach. On their first date, Rivers takes Chaka to an expensive restaurant.

After learning about Phil's past relationship with a student, Christina decides they can have no future together and Phil makes the decision to resign. Jodie rallies her fellow students to save the school's music programme. Nick's father invites Jodie to stay at the Poulos home while her rowdy sister is in town.

Verbal and physical harassment over a misconstrued encounter with a young student causes Graham to have doubts about continuing to teach at Hartley. Chaka's father speaks to the students about oppression and violence. Chaka makes the difficult decision about whether to remain at Hartley or move north to Darwin with her family.