May - The voter base of the up-and-coming political party Australians for Peace and Prosperity, led by a newcomer known as David Anderson, reaches that of the de-facto opposition party, the Australian Labor Party. Many are now speculating that next year's election will be a three-way race between the United Australia Party, the APP and the Labor Party.
November - In response to party defections and to avoid splitting the vote next election, the ALP formally dissolves and nearly all of its members join the now more-popular APP.
April - Joseph Lyons calls for the Australian election in six months, beginning the campaign. David Anderson sits down for a beer with him, an unprecedented move during an election. Popular support already marginally favours Anderson.
October - David Anderson wins the election with a resounding victory, gathering 77.38% of the popular vote and gaining control of both the Lower and Upper Houses of Parliament. His first words upon entering office are "My fellow Australians, together we shall take this great nation of ours, and place it at the forefront of the world stage."
December - Prime Minister Anderson passes his first major piece of legislation, establishing new and strengthened trade relations to neighbouring countries. New Zealand, Papua New Guinea and Indonesia become Australia's biggest trading partners.
March - Despite the success of the elimination of tariffs, Prime Minister Anderson sought to strengthen ties even further and put forward the idea of a Pacific Union, with a common currency and completely free trade, commerce and travel. No participating nations reject the idea.
May - The Pacific Alliance is established, incorporating Australia, New Zealand, Papua New Guinea and Indonesia. This sets out an ambitious agenda, aiming for a common currency by 1939 and a Pacific Union by 1943.
June - Prime Minister Anderson pushes for Australian independence, with the submission of the Australian Republic Act, an amendment to the Australian Constitution establishing Australia as independent from the British Empire. However, due to lack of popular support, the Bill is shelved.
November - After British contempt for Australia is revealed to the Australian public, the Australian Republic Act is re-submitted, garnering bipartisan support and easily passing both houses.
February - The Australian Republic Act is submitted to the Australian public for assessment and approval. Needless to say, Australia remains divided on the issue.
April - The Australian Republic Act is deemed successful, with 63% of voters acting in the affirmative and only Queensland and Western Australia rejecting the proposal. Australia is officially redesignated the Republic of Australia, with the Prime Minister being redesignated President, who also functions as the Head of State and is voted in by a majority vote from their respective party. President Anderson announces this as being "the single greatest moment in Australian history."
May - The Paco is established as the common currency of the Pacific Alliance.
September - Germany and the Soviet Union launch a joint invasion of Poland. The Second World War commences. Britain and France both declare war on Germany. However, President Anderson opts not to send Australian troops into Europe, but instead decides to focus on defending the Australian mainland from Imperial Japan.
October - Australia passes the Wartime Action Bill, greatly increasing national defence funding and making a commitment to rebuilding their neglected Navy service, formally redesignated the National Australia Sea Force.