Concerned that 13-year-old Annie is not receiving a proper education, Sally visits Bruce, who maintains that it’s none of her business. But when Annie cuts herself, Sally insists she goes to hospital. While Annie is being treated, Bruce tells Sally that Annie is home-schooled, but Annie later admits to Sally that he is lying. Sally shares her concerns about Annie with Brad, who then informs the Department of Education against Sally’s wishes.
Struggling to decide what to do after Hugh’s ultimatum, Rachel ends up taking desperate measures, finally admitting she’s in love with him. Meanwhile, Kim is in a dilemma when he learns Kit has brought forward her plans to leave the Bay in the wake of Archie’s health scare. He arrives to bid farewell to Kit. But temptation gets the better of them both and they fall into a passionate embrace. Elsewhere, Rachel makes the heartbreaking decision to let Hugh leave for his life overseas.
Ric, Matilda and Lucas want to go swimming at a nearby cavern, and Lucas agrees to let them use Tony’s dinghy to get there. But when the dinghy unexpectedly sinks, Luc panics, and decides to keep the truth from Tony, instead letting him believe the dinghy was stolen.