Kate ignores his advice and attends Sophie’s prize-giving ceremony, but when Harry and Sophie discover her presence, they’re furious with her and insist that she go to the showcase immediately. Kate is worried there’s not enough time, but Harry and Sophie band together managing to get Kate to her destination in the nick of time. Kate rises above the drama and her own doubts to dance as best she can. But just when it seems the afternoon will end in triumph, Jason Coleman tells her that she hasn’t got what it takes. Kate’s dream is over.
Everyone’s shocked when Donna reveals she’s quit her fashion internship with Saffron. Donna presents numerous unconvincing reasons because she can’t bear to tell anyone the truth: that she stole a design and passed it off to Saffron as one of her own. Furious that Donna has dumped her (no-one dumps Saffron Jankievicz), Saffron tracks Donna down and demands she come back, admitting that Donna has talent and style. All hell breaks loose when Donna finally admits to stealing the design, but when Saffron accuses her of being a thief, Donna defends herself – what about Donna’s work that Saffron has claimed as her own? Faced down by an angry Donna, Saffron offers her a job… but there are going to be strings attached.
Saffron makes Donna’s working life hell as payback for standing up to her. Donna cops her punishment but spending every hour at the studio causes problems at home. She’s behind on her chores and she has to skip classes to fit everything in. Paul finds out and warns her while she is under his roof, she has to live by his rules. Tired, emotional and insulted by his approach, Donna packs a bag and leaves home.
Kate can’t get over Jason Coleman’s rejection and packs away all of her trophies. She brave faces to her friends, claiming she’s looking forward to a normal life without sore feet and constant stress. However she takes her hurt and frustration out on Harry and Sophie, blaming Harry for encouraging her and claiming the responsibility of looking after her two younger siblings is holding her back. Harry and Sophie are hurt by her words and the family feels the pressure. Will Kate be able to heal the rift? And will she find the courage to dance again?
On his return from New Zealand, Dan soon realises that Libby knows about the twelve thousand dollars he gave to Sam – the money that was supposed to be their deposit to buy a house. Dan tries to explain but Libby refuses to listen – accusing Dan of gambling with their future. Lucas encourages Dan to see his actions from Libby’s point of view and Dan apologises. Although reconciled, they still have the issue of being unable to get a home loan without a deposit. With their dreams of owning a house fading fast, Libby turns to Karl and Susan – who are happy to loan them the deposit, but make it very clear that Dan has caused a lot of hurt. Dan promises he has broken off all contact with Sam, but when Susan learns that Sam is still calling, she confronts Dan. With Sam still making demands on him, Dan finds it hard to turn his back on her and in the ensuing argument with Libby, Ben hears something Dan wishes he’d never said.
After being reprimanded by Paul, Donna walks out and arrives at the Kennedy’s house needing a place to stay. When Rebecca finds out, she gives Paul an ultimatum he can’t refuse: either get Donna to move back in or there’ll be trouble. Paul tries everything to get Donna to move back, but fails. Finally, after his attempt to bribe her backfires, Paul discovers that simple honesty works better than any sort of manipulation.
When Ben turns up at the Kennedy house in tears, Susan investigates. She interrupts Libby and Dan mid-fight, but they won’t tell her what’s going on, or why Ben is so upset. Despite Karl’s suggestions that they should keep their noses out of Dan and Libby’s business, Susan fronts Libby. But Libby remains tight-lipped, saying she can work out her own problems. Once Libby calms Ben down, she assures him that Dan will apologise and talk this through with him. But as they walk out on the street, they’re just in time to see Dan and Lucas ride off on their bikes. Ben is now devastated. Libby, furious with Dan, finds Sam’s number and rings to have it out with her. When Dan finds out he goes on the attack. How dare Libby threaten Sam? Libby walks out and returns to the Kennedy house, where she breaks down. This sets Susan off. She storms in on Dan and gives him a blast. Dan throws Susan out of the house. How will they ever get back from this?
When Lou returns from New York, Lyn is surprised to find she now has not only a housemate but an employee at Harold’s Store. Lou is appalled at the effect Paul’s embargo has had on the store but promptly takes charge and organises to re-stock the shelves. When Paul learns this, he attempts to drive a wedge between Lyn and Lou. In the ensuing paranoia, Lyn takes the bait and attacks Lou, which in turn leads to Lou taking up Paul’s offer of a job at Charlie’s. Looks like Paul wins this round.
Covering the disappointment of her dance dream ending, Kate focuses on making the Green Deb a success. With the arrival of the Future Spark bike trailer, she’s in full organiser mode. However, when a clip of her being rejected by Jason Coleman surfaces on the net, she’s hurt and sidetracked. She’s convinced it was Amanda, but Declan counsels her to rise above Amanda’s games and concentrate on what is really important. Fired up, Kate successfully convinces the Lassiters lunch-time crowd to get involved, but her success pushes Amanda to extremes. When the volunteers, including Kate and Lucas, take to the bikes for the afternoon shift, the trailer’s control box explodes. Someone has sabotaged the trailer. Kate accuses Amanda, who denies it, and Kate is left to face the reality that yet another of her dreams is dead.
Paul’s influence on Lyn’s suppliers continues to drive Harold’s Store into the ground. Lyn begs Karl and Susan to give her their custom, since she’s down to bare essentials and can’t provide a full menu. Meanwhile, Rebecca and Lou are run off their feet over at Charlie’s. Unable to resist gloating, they pop across the way to check in on Lyn. The store is empty, as are the shelves, and a defeated, bitter Lyn informs them that they have won. She is selling up - to none other than the international Apollo’s franchise. Is this the end of an era in Erinsborough?
On the heels of Dan’s argument with Susan, Libby is hurt when Dan admits he wishes having a baby with her wasn’t so messy. Karl remonstrates with Susan for taking Dan to task but Susan feels she has a right to have a say when she is carrying Dan and Libby’s child. Both Dan and Susan hold their positions the next day, and it’s up to Karl to suggest a family meeting to resolve things. Dan surprises Libby by not agreeing immediately, instead suggesting that the two of them work out their issues so they can present a united front to her parents. They do so, telling Karl and Susan thanks but no thanks to their offer of a house deposit. Dan doesn’t want to feel more obliged than he already does. Despite everyone apparently making peace at the meeting, Susan rails against their decision in private, while Dan confides to Lucas that he thinks his relationship with Susan may be permanently damaged.
