Kyle, Kate, Jade and Michelle go to Charlie's for a night out together, and all seems to be going well for Kate and Kyle until Rhys turns up, Kate's one-night-stand. Kyle's unsure about what's going on but manages to put two and two together when Rhys hands Kate back her earring. However, Kate's not keen to own up to her little indiscretion and lies to Kyle about how Rhys came to have her earring. Really Kate? Haven't you learnt that lies don't get you anywhere? Anyway, it's only a matter of time before the truth comes out...and even though Kyle's got a reputation for being stupid, it ain't necessarily so.
Andrew's frustrated about schoolies, he hasn't got the money together and desperately wants to go. So, when he comes across two backpackers needing a place to crash for the night, Andrew sees it as an opporunity to put them up for the night and charge them for it. However, will they be happy with the accommodation he's arranged for them, the Men's Shed?
Meanwhile, Lucas still has his father's money on his mind, until he meets Jade and Kyle's flatmate Michelle and all his worries seem to just... fade away.