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.

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.

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.

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.

Their friends try to get Rose and Jack together for the school dance. Yola and Southgate are locked in a storage cupboard. Con arranges for Jodie to perform at the dance.

The head gardener at the nursery where Nick and Danielle are participating in a work experience programme has a heart attack. Con arranges for Jodie and himself to work at a recording studio and lands her a job singing jingles. A lack of attention from their respective partners helps to bring Nick and Dani together.

While trying to earn some extra money, Rivers unknowingly buys some stolen car parts through Con, then refuses to name his supplier when the police charge him.