The Grand Prix was held from 14–16 March at Albert Park Lake, Melbourne, Australia. It was the 13th race at the circuit, and the 24th Formula One race in the country. 2007 World Champion Kimi Räikkönen had won the previous year's race, and no major changes had been made to the circuit since the previous race.
The race saw the debut of the Force India F1 team, who had bought Spyker at the end of the 2007 season. Two drivers also made their debut at the Grand Prix, in triple world champion Nelson Piquet's son, Nelson Piquet, Jr. and four time Champ Car champion Sébastien Bourdais. GP2 champion Timo Glock also made his return to Formula One with Toyota.
In the second practice, Hamilton was fastest, almost a second ahead of second-placed Mark Webber. Massa and Kovalainen were third and fourth. Räikkönen was sixth, but his time in first practice was faster than Hamilton's fastest in second.
In the sole free practice session on Saturday, the two BMW Sauber drivers were fastest, with Robert Kubica leading Nick Heidfeld. Fernando Alonso was third for Renault, with Nico Rosberg (Williams) behind in fourth. After an unpredictable sixty minutes, the Ferrari and McLaren drivers were all further down the order than on Friday.
At the start Kubica failed to capitalise on his second place start, while Sebastian Vettel was slow away from the line. Nelson Piquet Jnr made contact with Italian Giancarlo Fisichella at the first corner, putting Fisichella out of the race. Felipe Massa spun and grazed the wall, forcing him to pit for a new front wing. In another incident at turn three Mark Webber, Anthony Davidson, Jenson Button and Sebastian Vettel came together, putting all three out of the race. The safety car was deployed in response to the accidents. At the front Lewis Hamilton took the early lead, followed by Kubica and Rosberg. Massa's team mate Räikkönen elevated himself from fifteenth to eighth on the first lap.
The safety car came in on lap three and Hamilton quickly opened up a lead from Kubica in second. Räikkönen was stuck behind Rubens Barrichello, finally passing him lap 19 for sixth place. During the first set of pit stops Toyota driver Jarno Trulli was forced to retire due to electrical problems.
On lap 26 Massa attempted to pass David Coulthard. The two collided; Coulthard retired from the race with serious damage to his car. This brought the safety car out for the second time. Massa retired on lap 29 with Ferrari's first engine failure of the race. Räikkönen, who had been about to pit, had to stay out. Despite this he did not pit when the pit was re-opened two laps later, preferring to move up the field as other drivers pitted.
The race re-started on lap 30. Räikkönen braked very late while trying to pass Heikki Kovalainen for second place and went right off the track, losing several places. Another mistake two laps later forced him back to last of the 11 cars left on the track. He went off the track again on lap 42.
On lap 44 Timo Glock ran wide onto the grass and the bottom of his car hit two substantial bumps, the second of which caused it to briefly fly up in the air and land with force sufficient to break the suspension, leaving the monocoque in contact with the ground and unable to be stopped, resulting in a sizable accident. Glock spun twice and came to rest against the wall further down the track. He was forced to retire and the safety car came out for a third time. On the same lap, due to a false signal from the chief mechanic, Barrichello left a pit stop before the fuel hose had been removed from his car. Several mechanics suffered minor injuries. He would also serve a ten second penalty for this pit stop as it was taken while the pit lane was closed. Ultimately he was disqualified for exiting the pitlane while it was closed.
The race re-started on lap 47 and one lap later Kubica was forced out of the race after a collision with Kazuki Nakajima. Fernando Alonso was able to move up the field as a result of the high number of retirements and overtaking of Kovalainen and Räikkönen in a single move, and was fifth with eight laps left. However Kovalainen threatened to pass him in the last few laps. Räikkönen retired with Ferrari's second engine failure of the race on lap 54, after driving slowly into the pit lane.
Sébastien Bourdais's first Formula One race ended on lap 56 after suffering an engine failure (Ferrari's third of the race). He was running 4th place in the Scuderia Toro Rosso at the time and had completed his final pit stop. With just over one lap to go Kovalainen finally passed Alonso into fourth, but Alonso regained the place on the straight shortly afterwards later when Kovalainen accidentally hit the pit lane speed limiter, slowing the car momentarily.
Seven cars finished the race, but Barrichello was later disqualifed for passing a red light at the pit lane exit. Lewis Hamilton won, having led all but 5 laps of the race. Nick Heidfeld came second and Nico Rosberg recorded his first podium in third. Kazuki Nakajima was the final car to finish, but was later given a ten-place grid penalty for the next race after hitting Kubica under safety car conditions.
| Pos | No | Name | Constructor | Part 1 | Part 2 | Part 3 | Grid |
|---|---|---|---|---|---|---|---|
| 1 | 22 | Lewis Hamilton | McLaren-Mercedes | 1:26.572 | 1:25.187 | 1:26.714 | 1 |
| 2 | 4 | Robert Kubica | BMW Sauber | 1:26.103 | 1:25.315 | 1:26.869 | 2 |
| 3 | 23 | Heikki Kovalainen | McLaren-Mercedes | 1:25.664 | 1:25.452 | 1:27.079 | 3 |
| 4 | 2 | Felipe Massa | Ferrari | 1:25.994 | 1:25.691 | 1:27.178 | 4 |
| 5 | 3 | Nick Heidfeld | BMW Sauber | 1:25.960 | 1:25.518 | 1:27.236 | 5 |
| 6 | 11 | Jarno Trulli | Toyota | 1:26.427 | 1:26.101 | 1:28.527 | 6 |
| 7 | 7 | Nico Rosberg | Williams-Toyota | 1:26.295 | 1:26.059 | 1:28.687 | 7 |
| 8 | 9 | David Coulthard | Red Bull-Renault | 1:26.381 | 1:26.063 | 1:29.041 | 8 |
| 9 | 12 | Timo Glock | Toyota | 1:26.919 | 1:26.164 | 1:29.593 | 191 |
| 10 | 15 | Sebastian Vettel | Toro Rosso-Ferrari | 1:26.702 | 1:25.842 | no time2 | 9 |
| 11 | 17 | Rubens Barrichello | Honda | 1:26.369 | 1:26.173 | 10 | |
| 12 | 5 | Fernando Alonso | Renault | 1:26.907 | 1:26.188 | 11 | |
| 13 | 16 | Jenson Button | Honda | 1:26.712 | 1:26.259 | 12 | |
| 14 | 8 | Kazuki Nakajima | Williams-Toyota | 1:26.891 | 1:26.413 | 13 | |
| 15 | 10 | Mark Webber | Red Bull-Renault | 1:26.914 | no time3 | 14 | |
| 16 | 1 | Kimi Räikkönen | Ferrari | 1:26.140 | no time4 | 15 | |
| 17 | 21 | Giancarlo Fisichella | Force India-Ferrari | 1:27.207 | 16 | ||
| 18 | 14 | Sébastien Bourdais | Toro Rosso-Ferrari | 1:27.446 | 17 | ||
| 19 | 20 | Adrian Sutil | Force India-Ferrari | 1:27.859 | 225 | ||
| 20 | 18 | Takuma Sato | Super Aguri-Honda | 1:28.208 | 18 | ||
| 21 | 6 | Nelson Piquet Jr. | Renault | 1:28.330 | 20 | ||
| 22 | 19 | Anthony Davidson | Super Aguri-Honda | 1:29.059 | 21 |
| Pos | No | Driver | Constructor | Lap | Time/Retired | Grid | Points |
|---|---|---|---|---|---|---|---|
| 1 | 22 | Lewis Hamilton | McLaren-Mercedes | 58 | 1:34:50.616 | 1 | 10 |
| 2 | 3 | Nick Heidfeld | BMW Sauber | 58 | +5.478 | 5 | 8 |
| 3 | 7 | Nico Rosberg | Williams-Toyota | 58 | +8.163 | 7 | 6 |
| 4 | 5 | Fernando Alonso | Renault | 58 | +17.181 | 11 | 5 |
| 5 | 23 | Heikki Kovalainen | McLaren-Mercedes | 58 | +18.014 | 3 | 4 |
| 6 | 8 | Kazuki Nakajima | Williams-Toyota | 57 | +1 lap | 13 | 3 |
| 7 | 14 | Sébastien Bourdais | Toro Rosso-Ferrari | 55 | Engine | 17 | 2 |
| 8 | 1 | Kimi Räikkönen | Ferrari | 53 | Engine | 15 | 1 |
| Ret | 4 | Robert Kubica | BMW Sauber | 47 | Collision | 2 | |
| Ret | 12 | Timo Glock | Toyota | 43 | Accident | 18 | |
| Ret | 18 | Takuma Sato | Super Aguri-Honda | 32 | Transmission | 19 | |
| Ret | 6 | Nelson Piquet Jr. | Renault | 30 | Clutch | 20 | |
| Ret | 2 | Felipe Massa | Ferrari | 29 | Engine | 4 | |
| Ret | 9 | David Coulthard | Red Bull-Renault | 25 | Collision | 8 | |
| Ret | 11 | Jarno Trulli | Toyota | 19 | Electrical | 6 | |
| Ret | 20 | Adrian Sutil | Force India-Ferrari | 8 | Hydraulics | 22 | |
| Ret | 10 | Mark Webber | Red Bull-Renault | 0 | Collision | 14 | |
| Ret | 16 | Jenson Button | Honda | 0 | Collision | 12 | |
| Ret | 19 | Anthony Davidson | Super Aguri-Honda | 0 | Collision | 21 | |
| Ret | 15 | Sebastian Vettel | Toro Rosso-Ferrari | 0 | Collision | 9 | |
| Ret | 21 | Giancarlo Fisichella | Force India-Ferrari | 0 | Collision | 16 | |
| DSQ | 17 | Rubens Barrichello | Honda | 58 | Disqualified | 10 |
| Pos | Driver | Points |
|---|---|---|
| 1 | Lewis Hamilton | 10 |
| 2 | Nick Heidfeld | 8 |
| 3 | Nico Rosberg | 6 |
| 4 | Fernando Alonso | 5 |
| 5 | Heikki Kovalainen | 4 |
| Pos | Constructor | Points |
|---|---|---|
| 1 | McLaren–Mercedes | 14 |
| 2 | Williams–Toyota | 9 |
| 3 | BMW Sauber | 8 |
| 4 | Renault | 5 |
| 5 | Toro Rosso–Ferrari | 2 |