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.