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See also: 1984 in Australia, other events of 1985, 1986 in Australia

Incumbents

• Queen of Australia - HM Queen Elizabeth II
• Governor General - Sir Ninian Stephen
• Prime Minister - Bob Hawke
• Premier of New South Wales - Neville Wran
• Premier of South Australia - John Bannon
• Premier of Queensland - Sir Joh Bjelke-Petersen
• Premier of Tasmania - Robin Gray
• Premier of Western Australia - Brian Burke
• Premier of Victoria - John Cain
• Chief Minister of the Australian Capital Territory - Post did not exist in 1985
• Chief Minister of the Northern Territory - Ian Tuxworth

Events

• 1 February - AM stereo broadcasting starts in Australia.
• 5 February - Australia cancels its involvement in U.S.-led MX missile tests.
• 2 March - The ALP government of John Cain reelected in Victoria for a second consecutive term.
• 28 April - The Nuclear Disarmament Party (NDP) splits.
• 4 June - Melbourne celebrates its 150th anniversary
• 5 September - John Howard replaces Andrew Peacock as federal Liberal leader & thus federal Leader of the Opposition
• 25 November - A man wearing a chicken suit walks into the House of Representatives and sits on the government front bench. He is later removed.
• November 12 - The screaming star, John Farnham releases Whispering Jack. Which Contains the singles You're The Voice + Pressure Down
• 7 December - The Labor government of John Bannon is re-elected for a second term in South Australia.

Unknown Dates

• Capital gains tax is introduced
• New South Wales abolishes capital punishment for treason & piracy with violence, thereby abolishing capital punishment from Australia.
• The McClelland Royal Commission into the nuclear tests at Maralinga in the 1950s reports its findings.

Arts and literature

• 18 February - Australia wins the 26th Viña del Mar International Song Festival with the song I can no longer (sung in Spanish as Ya no puedo más), created by K. C. Porter, Turner y Toppano, and sung by Lorenzo Toppano.
• 9 March - The National Gallery of Australia purchases the painting L'Après-midi à Naples (An Afternoon in Naples) by Paul Cézanne for AUD $1 million.

• Christopher Koch's novel The Doubleman wins the Miles Franklin Award

Film

Television

• 11 February - Ray Martin takes over Mike Walsh's old daytime slot, replacing The Mike Walsh Show with Midday with Ray Martin.
• 18 February - Network 0/28 becomes known as SBS.
• 18 March - Neighbours premieres on the Seven Network. Six months later Neighbours is axed by HSV-7, but Network Ten bought the rights and picks up the soap and it becomes a massive hit for them.
• 8 June - Hey Hey It's Saturday moves to 6:30pm Saturdays.

Sport

• January 18 – First day of the 1985 World Indoor Games in Paris, France, where six Australian athletes are competing: Mike Hillardt (1500 metres), Clayton Kearney (60 and 200 metres), Dave Smith (5000m Walk), Nicole Boegman (Long Jump), Gael Martin (Shot Put), and Deann Mayfield (High Jump). Hillardt wins the gold in the 1500 metres, while Smith claims bronze.
• March 24 – Robert de Castella is once again Australia's best finisher at the IAAF World Cross Country Championships, this time staged in Lisbon, Portugal. He finishes in 20th place (34:17.0) in the race over 12,190 metres.
• June 9 – Grenville Wood wins the men's national marathon title, clocking 2:13:37 in Sydney, while Elizabeth Patmore claims the women's title in 2:45:47.
• June 11 – New South Wales win their first Rugby League State of Origin series.
• August 17 – North Melbourne play their last game at the Arden Street Oval. North Melbourne defeat Richmond, 16.20.116 to 9.12.66.
• September 28 – Glenelg Tigers defeat North Adelaide Roosters for the SANFL flag.
• September 28 – The Essendon Bombers (26.14.170) defeat the Hawthorn Hawks (14.8.92) to win the 89th VFL premiership. It is the second consecutive premiership for Essendon.
• September 29 – The Canterbury Bulldogs defeat the St. George Dragons 7-6 to win the 78th NSWRL premiership. It is also the second consecutive premiership for Canterbury.
• November 3 – The first Formula One Australian Grand Prix takes place on the streets of Adelaide.
• December 4 – Australia are unable to undo a 2-0 deficit from the first leg and draw 0-0 with Scotland in the World Cup qualifying playoff at Olympic Park, failing to qualify for the 1986 FIFA World Cup.
• December 10 – 120 members are inducted into the new Sport Australia Hall of Fame.

Births

• January 28 - Libby Lenton, swimmer
• January 29 - Isabel Lucas, actress
• February 17 - Anne Curtis, actress
• March 13 - Sean Carlow, figure skater
• July 5 - Stephanie McIntosh, actress
• August 30 - Leisel Jones, swimmer
• October 10 - Ricki-Lee Coulter, singer
• October 16 - Casey Stoner, racer
• November 5 - Kate DeAraugo, singer

Deaths

• January 11 - William McKell, 12th Governor General of Australia and Premier of New South Wales (b. 1891)
• April 2 - Doris Fitton, actress and theatrical director (b. 1897)
• May 3 - Percy Spender, diplomat and politician (b. 1897)
• August 9 – Clive Churchill, rugby league player (b. 1927)
• August 20 – Ken Kennedy, ice speed skater (b. 1913)