No 22
Terese is whingeing to Brad about Paul's decision to pull out of the Lassiter's chain. He suggests she call Lucy; Terese has left a message but says there's little Lucy could do. Ultimately Paul owns the hotel building, so can align it with whichever franchise he wants. Terese says she'll lose her job and the house, which they only have as part of her employment package. She doesn't want to leave Ramsay Street, but Brad says they'll cope if they have to move. Terese considers contacting some head-hunting agencies, while Brad starts a budget on the computer, to work out where they stand. Terese remains frustrated, saying Paul must have a hell of a grudge against her.

Penthouse du Paul
Paul denies having a grudge against Terese, Kate having just accused him of so doing. He says that pulling out the chain is a very good move for the hotel, and that in any case it serves Terese right for having developed such a power complex. Kate tries guilt-tripping Paul by mentioning Jack Lassiter, but Paul says the hotel merely carries his name - and that both it and the complex will have a name-change. Kate is surprised Paul's so eager to change his brand, but he avoids addressing the issue.

Paul suggests they go out to celebrate, but Kate doesn't want to leave the penthouse after embarrassing herself yesterday by admitting to Georgia and Kyle that she's in love with him. Paul is convinced they'll be over it by now, but Kate thinks otherwise.

No 30
Georgia tells Sonya about Kate's declaration of love for Kyle...

GEM: One final farewell gift from my cousin.

Sonya asks if Georgia will see Gem before she leaves town, but Georgia doesn't think she can face it. However, Sonya thinks it might be good closure for both of them. Toadie comes in with Callum and Nell, and everyone wishes Nell a happy birthday. Toadie tries to be complimentary about Sonya's effort at baking a cake, but he can't even tell what it's supposed to be, it's that haphazard. Toadie rushes off to the hospital, where he's meeting Auntie Coral with Gem. Georgia decides not to go with him. Meanwhile, Callum is despondent that Josie hasn't come round to see him yet since he got back from China.

Erinsborough Hospital
Toadie goes to meet Gem, who has been referred to a psychiatrist and has been put on pills. Toadie says she's doing the right thing, and that he's proud of her. But Gem, clearly confused, says she thinks it'll help get her job back at the school, and seems to be under the impression that she's going to be staying on with Toadie. He quickly disabuses her of that notion, telling her she's going home to Birregurra with Coral. Gem asks if Georgia's coming to see her off, but Toadie says she isn't.

GEM: Yeah, well I'm not going without saying goodbye to her.
TOADIE: ... Georgia sends her best, okay?
GEM: She can say that to my face.
TOADIE: Gemma, Georgia is not coming.

Gem goes quiet and continues to pack her things - but outside, Georgia turns up after all.

GEM: See, I told you she would. I knew you wouldn't let me down.
GEORGIA: I just wanted to say all the best, with what happens from here.
GEM: And no hard feelings, yeah? Because we're family, and that's what counts.
GEORGIA: Well, in a weird way I am thankful, because you made me see the truth about Kate and Kyle. I'm not happy about the way it happened, Gem. But at least all the secrets are out in the open now.
GEM: You know that I would never do anything to hurt you on purpose, right?
GEORGIA: ...
GEM: I'm gonna get through this with you by my side, Goldie.

Gem goes to hug Georgia, who just looks freaked out. Georgia says it's best if they spend some time apart, and Toadie drags Gem away before it becomes any more awkward. Georgia sadly bids her goodbye.

No 30
Josie turns up, and sits down with Callum, each saying they missed the other. They go in for a kiss, but end up bumping heads. They agree they need more practice and kiss for real, but are interrupted when Sonya comes in. She's in a bit of a stress because of Nell's party, and ropes them into helping out. We're treated to a party preparation montage, in which Sonya, Toadie and Kyle fill the back yard with birthday paraphernalia.

Back indoors, Sonya is putting the final touches to the disastrous birthday cake she's made for Nell. When Callum can't tell what it is either, Sonya informs him it's a flower - and gets really upset because it looks nothing like one!

CALLUM: Mum - it's just a bit abstract. But it is a flower, you know. And I'm sure it's gonna taste great. And all the little babies are going to be jealous.
SONYA: Thank you.
CALLUM: Don't stress so much. These things get eaten in, like, five seconds anyway.
SONYA: I know, I know. It's just - it's for your sister's first birthday, and in a way I was kind of making it for you too.
CALLUM: Mum, last time I checked, I am sixteen.
SONYA: Yeah, I know, I know. But when you turned one, I tried to make you a cake. But I didn't finish it, because I - I wasn't really up to it. You see, that's what sort of mother I am. I can't even make a lousy cake. I mean, you missed out on so much, and... And I missed out on so much.
CALLUM: Mum, it's fine, okay? Because I don't even remember.
SONYA: Yeah, I know. But I do, sweetheart. I remember.

By this point she's in tears, and Cal hugs her, promising to share the cake with Nell and telling Sonya he loves her. Toadie watches this exchange, and as Cal leaves, Sonya apologises to Toadie, and gets angry with herself for letting Nell down. Toadie reminds her that she's been busy trying to help Jacob, another young parent who's struggling. Toadie says he now understands better why Sonya's been so obsessed with helping Jacob - because she didn't want him to go through all the things she did. Sonya's annoyed for dropping all her issues on Toadie, Cal and Nell, but Toadie says that's what families are for, and demands an equally 'ugly cake' for his own birthday. They hug and kiss, with Sonya telling Toadie how lucky she is to have him.

Penthouse du Paul
Paul is slagging off Terese on the phone to some bigwig at the new hotel chain he's joining, saying it would be a big mistake to keep her on. But it seems the chain is insisting on keeping Terese on as a condition of their signing the contract! Paul relays this news to Kate after the call ends.

KATE: Why's that a problem?
PAUL (laughs): I must live in a world where I don't think mediocrity should be rewarded.

Incredulous, Kate reminds Paul how hard Terese works for Lassiter's.

KATE: This is personal. You don't like Terese. And you especially don't like that your little sister made you hire her. So now this is you trying to assert your independence.

Paul denies it, so Kate ends the conversation by turning the TV on.

No 30
In the garden, a slew of extras (and Kyle) have rocked up with their babies, to celebrate Nell's first birthday in style. Indoors, Cal and Josie are busy pashing on the couch. Bailey comes in, and the lovebirds leap apart. Bailey has a bone to pick with Callum, about breaking his cover the other night when he went to see Gem. But Cal and Josie make it abundantly clear they're having some private time, and Bailey skulks out as quickly as he barged in. The pair go back to kissing.

Outside, the birthday party continues, as Kyle's balloon animals prove as taxonomically ambiguous as Sonya's flower cake. Susan is asking after Callum; Sonya explains he's indoors, pashing Josie, much to Susan's amusement.

Meanwhile, Jacob touches base with Toadie, and thanks him for everything he and Sonya have done for him and Elliott. Toadie says he appreciates Jacob has struggled, but adds that running off and leaving his son with strangers is not on. Toadie says Jacob put Sonya under a lot of pressure, and says he won't apologise for contacting Jacob's in-laws. Jacob's a little colder by this point, but says he understands. Jacob goes over to talk to Georgia, who is holding Elliott, about the baby's medication - while Kyle (who's holding Nell) watches jealously from the other side of the garden.

Lassiter's Complex
Terese is telling Brad she's been in touch with various job agencies, when Paul sidles over and demands to talk about the next six months' budget projections. He explains the deal with the other hotel chain, Quill, isn't going through after all; the hotel's staying within Lassiter's. Once Paul's gone, Terese is perplexed as to why the deal's off, but Brad says she should just be happy it's worked out. Terese is convinced there's more to it.

No 30
In the garden, the party continues as Sonya opens Nell's presents on her behalf. Kyle goes to talk to Georgia, who's standing on the balcony looking pensive. Georgia thinks they should talk about what Kate said. Kyle insists he had no idea she felt like that, and Georgia believes him, but wants to know how he feels about Kate, given that he once had a thing for her. Before he can answer, Toadie interrupts, pulling Kyle away for godfather duties.

Harold's Store
Kyle has gone on an errand for Toadie to buy cake candles, and sees Kate in the store, hiding behind a magazine. He sits down with her, and asks whether she meant it when she said she loved him.

KATE: Yeah I did.
KYLE: Because I didn't even know. I had no idea.
KATE: Yeah, and I never would have said anything. I know that I've just made things even more awkward and weird... although I do have to admit, it was nice to finally say it.

Kyle asks when the feelings started; Kate says it was around the time she broke up with Mason, and Kyle supported her with her health issues.

KATE: I can't help it. I'm in love with you, Kyle. And I know that's really inconvenient for everyone else. But at least it's the truth. And now you know.

She walks out.

No 30
The garden party continues, as Toadie and Sonya blow out the candles on Nell's cake. Georgia and Kyle go to take the cake inside, and resume their conversation from earlier. Georgia again asks Kyle if he has feelings for Kate. He hesitates and says he isn't sure what he feels yet, leading Georgia to think he does have feelings for Kate.

GEORGIA: If you want to be with Kate, then go for it. I won't stand in your way. You have my blessing. If that's what you truly want, then all you have to do is make up your mind.

Monday on Neighbours
- Kyle talks to Chris about the Georgia/Kate situation, and still seems confused about his feelings
- Kate tells Kyle that he'd go back to Georgia in a heartbeat if she forgave him. 'Would I?' he replies.
- Scurrilous journo Ruby witters on to Amber about how having a girlfriend doesn't suit Josh's profile
- Paul tells Terese she's no more equipped to play happy families than he is
- Terese makes a comment when Amber turns up to a Willis family- only event
- Drama at the penthouse, as Paul finds the fire alarm ringing and the place full of smoke