Alf has had his hip operation and Winston has moved out, replaced by his straight cousin Pele. However, some things never change, such as Alf's continuing feud with Camille, particularly as she hogs his TV.

Encouraged by Arthur, Alf continues to pursue Camille, even getting down on one knee to propose though she wants time to think. After a night at the pub, a surprise engagement party is thrown for the still undecided couple, but when Camille learns that, as husband and wife, they could buy the house for a fifth of its worth, she's quick to accept.

Alf and Camille are now engaged to be married and Alf has already started to enjoy her cooking. They treat Arthur, who thinks he's won the pools, to a celebration dinner. Naturally, Alf has to remind Arthur who his best friend is, as best friends share everything.

Alf and Camille are preparing for a trip to Australia to meet her rich brother, in the hope that he'll lend them money to buy their house cheap off the council once married. Alf, ever the romantic, persuades Arthur, as best man, to accompany them so he can have someone to talk to (Camille doesn't count). It could also have something to do with the fact that Alf is terrified of making the trip.

On the flight to Australia, Arthur, Alf and Camille are nervous passengers though Alf's argument with a steward who forbids him to smoke breaks the monotony. Upon arrival, Alf argues with a man who turns out to be Mrs H's brother Ricky but, back at his house, the two bond over their shared racism.

Alf, Camille and Arthur have a day sightseeing, starting in a cafe where Alf defends Hitler. After Alf has rowed with a lazy lifeguard over a non-existent drowning victim, the trio take a boat trip and Alf soon discovers that he and his bride-to-be hold a variety of differing views. As far as Alf is concerned, one thing is for sure though: Australians are descended from convicts and they are still not to be trusted.

The Australian journey comes to an end as Alf, Camille and Arthur realise that Ricky is not all that they thought.