Needing to pay off his overdue debts, Lou keeps up his invalid act and attempts to deceive an insurance assessor – as well as his friends and neighbours. With news that he’s entitled to compensation, Lou’s feeling rather pleased with himself. However, when Toadie swings by he unwittingly thwarts Lou’s scam, leaving Lou exposed as a fraud and without a penny. Out of options, desperate Lou resorts to manipulating the Dial-A-Kyle expenses account. But can Lou bring himself to rip off a mate?
As Kate struggles with her new found feelings for Kyle, she kicks herself for missing her chance with him a year ago. Speaking to Erin on Skype, Kate considers going traveling again, but wonders if she’s just running away from her problems, that will eventually catch up with her, wherever she goes. But when she learns that Kyle was prepared to fly to Port Douglas for her, even borrowing money off his gran for the flight, Kate realises there may still be hope and when Rhys lets slip that it caused huge problems between Jade and Kyle, Kate seems pleased. Later that night, in Charlie’s, Rhys, unwittingly, encourages Kate to stay in Erinsborough and fight for Kyle.