1978 Australian Grand Prix

John McCormack started on pole in his McLaren M23 alongside Kiwi Graham McRae in his own designed and built McRae GM3, complete with a unique clear perspex cockpit cover allowing people to see McRae at work in the car. Before the start McCormack's crew discovered in the warm up that a blown head gasket in qualifying had resulted in damage to the 5.0L Leyland's cylinder heads but had no time to replace it so McCormack started under a cloud. Vern Schuppan qualified his Ansett Team Elfin MR8 3rd with a time equal to that of McRae with the Lola's of Alan Hamilton and Jon Davison rounding out the top 5 qualifiers.

Ian Adams did not practice in his Lola T330, but was permitted to start the race from the rear of the grid.

McRae won the start and was never headed despite slowing on the start/finish line for confirmation of a 'bad sportsmanship' flag for not slowing enough past Coopers crash on lap 22, and a spin at the Dandenong Road corner (turn 7 on the old circuit) on lap 32. During the time of Cooper's crash alone McRae extended his lead over Jon Davison and Vern Schuppan by more than half the length of the almost 1 km long front straight as others slowed for the yellow flags where McRae did not resulting in the bad sportmanship flag for McRae.

Alfredo Costanzo was the first to retire on lap 5 when he lost 2nd gear in Kevin Bartlett's spare Lola T400B, while McCormack retired his McLaren from 3rd place with head gasket failure on lap 6.

McRae won the 49 lap race by two laps from John Briggs driving an older model Matich A51 Repco-Holden, with Peter Edwards in a Lola T332 finishing 3rd. McRae's fastest race lap of 1:01.9 (average speed of 180.29 km/h or 112 mph) was also the fastest lap of the race.

The race was marred by several crashes with two drivers taken to hospital. On lap 22 Garrie Cooper broke some ribs and badly broke his leg in a 250 km/h crash at Rothmans Rise on the back straight, completely destroying his self-designed Elfin MR8 in the process. Cooper's simple explanation of the crash was that "something broke" sending him sliding sideways along the old fence that separated the race track from the horse track. Five laps later, his 3rd placed teammate Vern Schuppan had tangled with the ex-Alan Jones Lola T332 of 2nd placed Jon Davison in turn 1 and had to retire with damage leaving both Ansett Team Elfin cars with heavy damage. The crash also saw Davison retire with his car with terminal damage just moments later at Holden Corner (turn 2). Then with only 3 laps left, Alan Hamilton badly crashed his Lola T430 into the old Dunlop Bridge coming through the high speed causeway onto the main straight. The car crashed into the base of the bridge and was torn in two with Hamilton's body exposed at the front of the car while he was still strapped to his seat (thankfully this time drivers heeded the yellow flags and proceeded slowly through the scene as Hamilton and what was left of his car had bounced back onto the race track). Hamilton was unconscious and was taken to hospital with minor head injuries and some broken bones but went on to make a full recovery.