Tara's preparations for the Prix de Fonteyn are struck a devastating blow when Saskia's bullying results in an injury. Meanwhile, Kat convinces Miss Raine to grant her an audition to return to the academy.
Grace encourages Tara to take action against Saskia's spiteful treatment of her; Kat commences training for the Moulin Rouge which leads her to a big realisation; and Sammy is assigned a tutor.
Sammy returns home for his Grandpa Morrie's funeral and to ask his father to support his Academy tuition. An act of sabotage severs frenemies Tara and Abigail.
With exams finally over, both the boys and girls go out to let off some steam. However, Sammy is tense after failing his exams, Tara's still hurting from her breakup, and Grace decides to stir up trouble.
Tara decides to take action after realising that Saskia's continual critique of her dancing could jeopardise her mid-year exams, while Christian ditches his partner exam to hang out with Kat.
Tara feels the time she spends with Christian is impacting her dance study and suggests they pause their relationship.
Sammy's little brother Ari arrives at the academy throwing Sammy's hectic life schedule into havoc. Kat auditions to be a football cheerleader, happily encouraged by Ben. And Tara is having self-esteem issues.
After Sebastian questions his son, Ethan on the impressiveness of his piece at the showcase, Ethan takes it out on Abigail, his soloist, in an attempt to create a spectacular performance.
Tara's ecstatic when her mentor Saskia is appointed to teach the second years at the Academy. But Tara rapidly discovers that 'perfect' Saskia may not be the supportive teacher she hoped for.
Kat finally makes friends with the coterie of outcast girls at school, but despite having sworn off dancing, finds herself helping them choreograph a piece for drama class. Meanwhile, Ben Tickle is upgraded into second year.
Tara finds a new mentor to admire in Saskia Duncan, the youngest principal dancer in the Company's history. Saskia takes Tara under her wing, but gives her a few things to worry about such as if there's a future with Christian.
It's a roller-coaster year for Tara and her friends as they begin second year at the National Academy. Relationships fall apart as new ones are forged and shaking things up are two new students.
The end of year performance of The Nutcracker at the Opera House has finally arrived and Tara continues to perform her role so badly that it seems Abigail will be re-cast in her place. Does Tara have what it takes to put everything she has learnt this year into practice and find the courage to stand centre stage?
Rehearsals for The Nutcracker are underway. Tara is playing the role of Clara and quickly discovers that being the star is not all its cracked up to be as Abigail's claws re-emerge. Sammy is forced to admit that his feelings for Christian have moved beyond that of just friendship and Myles Kelly returns to rescue Kat from the costume dungeon where she has been exiled since walking out of her audition.
Bill Benson and Ted Adams are to appear in a Broadway show together and, while in Paris, each 'discovers' the perfect leading lady, but neglects to tell the other until the trip home - with their leading ladies.
Sammy and Christian have made a pact of brotherhood - from now on they are an island of man - but Kat wonders whether Sammy might have a man crush on his new best friend. Meanwhile, auditions for The Nutcracker are coming up and neither Kat nor Ethan are thrilled to discover their father is directing the ballet. Abigail learns her parents are separating and puts everything she has into securing a solo role.
Christian is ready for his court date but everything unravels when old loyalties cause him to change his story. Kat is shocked to learn her brother is moving overseas and in an attempt to get him to stay, tries to reignite the flame between Ethan and Tara.
Christian's sentencing hearing has been set and, believing that he's headed for juvenile detention, Christian decides to stop playing by other people's rules and goes back to his old neighbourhood. Tara has been working hard in rehab, with Ethan as her coach, but is too scared to dance again. Sammy is so focused on trying to save Christian that he's been ignoring Abigail and she has to accept that their relationship is over.
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