January
- Passarola Rising by Azhar Abidi is chosen as the best sf novel of 2006 by "Locus" magazine
- Surrender by Sonya Hartnett and The Book Thief by Markus Zusak are named as Honor Books in the 2007 American Library Association's Michael L. Printz Award for Excellence in Young Adult Literature
- Will Elliott wins the Golden Aurelais award for his novel The Pilo Family Circus
February
- Elizabeth Jolley, author of the Mles Franklin award winning novel The Well, amongst many others, dies at the age of 83
March
- Luck in the Greater West by Damian McDonald is announced as the winner of the 2007 ABC Fiction Award
- The Commonwealth Writers' Prize regional winners are announced. In the South East Asia and South Pacific region, the winners are: Best Book: Mister Pip, by Lloyd Jones (New Zealand), Penguin Best First Book: Tuvalu by Andrew O'Connor (Australia), Allen and Unwin
- "The Guardian" newspaper from the UK reports that Borders plans to sell its Australian stores
April
- The Australian Society of Authors announces a major new literary prize (worth $35,000) to be given to "the best novel written by an Australian author that depicts women and girls in a positive way or otherwise empowers the status of women and girls in society"
- East of Time, by Jacob Rosenberg, is announced as the winner of the 2007 National Biography Award
- Slow Man by J.M. Coetzee is included on the shortlist for the 2007 IMPAC Dublin Literary Award
- The shortlist for the 2007 Miles Franklin Award is announced, with only four novels making the list
May
- Tom Kenneally is named the 2007 recipient of the Peggy V. Helmerich Distinguished Author Award, an annual award based on a writer's full career
- the small township of Clunes, about 20 kilometres north of Ballarat in Victoria, decides to try to set up Australia's first dedicated booktown. The first weekend event takes place on May 20
- Deborah Robertson wins the 2007 Nita Kibble Award for Women Writers for her novel Careless
- Justine Larbalestier wins the Andre Norton Award for Young Adult Science Fiction and Fantasy, for her novel Magic and Madness. The prize is awarded by the SFWA (Science Fiction/Fatasy Writers of America)
- Mr Pip by Lloyd Jones of New Zealand is named as the winner of the 2007 Commonwealth Writers' Prize
- The winners of the 2007 NSW Premier's Literary Awards are announced. Book of the Year: Shaun Tan, The Arrival; Fiction: Peter Carey, Theft: a Love Story; Non-fiction: Robert Hughes, Things I Didn't Know: a Memoir; Poetry: John Tranter, Urban Myths: 210 Poems; Children's: Narelle Oliver, Home; Young People's: Ursula Dubosarsky, The Red Shoe.
June
- The Sydney Morning Herald Best Young Australian Novelists 2007 are announced as Danielle Wood, Will Elliott, and Tara June Winch.
- Austlit, the major Australian literary bibliographic index housed at the University of Queensland, announces the commencement of "Black Words", a literary website specialising in Australian Indigenous works
- Andrew Denton, host of the ABC TV interview show Enough Rope, has launched the Kit Denton Fellowship in honour of his late father. The $25,000 fellowship will be awarded each year to reward courage in performance writing. It's aim is to allow a writer a full year to develop their work
- Chinua Achebe is announced as the winner of the 2007 Man Booker International Prize
- The 2007 Ditmar Awards (otherwise known as the Australian Science Fiction Achievement Awards) are announced with The Pilo Family Circus by Will Elliot, picking up the Novel award
- Out Stealing Horses, by Norwegian author Per Petterson, is announced as the 12th winner of the IMPAC Dublin Literary Award
- Alexis Wright is announced as the winner of the 2007 Miles Franklin Award, for her novel Carpentaria
- The Great War by Les Carlyon and Colonial Ambition: Foundations of Australian Democracy by Dr Peter Cochrane are announced as joint winners of the Prime Minister's Prize for Australian History
- The winners of the 2006 Western Australian Premier's Book Awards are announced. Premier's Prize: Shaun Tan, The Arrival; Fiction: Simon Lazaroo, The Travel Writer; Poetry: Dennis Haskell, All the Time in the World; Non-fiction: Quentin Beresford, Rob Riley: an Aboriginal Leader's Quest for Justice and Peter Edwards, Arthur Tange: Last of the Mandarins; Children's: Shaun Tan, The Arrival; Young Adult's: Kate McCaffrey, Destroying Avalon
July
- Peter Temple is announced as the winner of 2007 Duncan Lawrie Dagger Award (formerly the Golden Dagger) in the UK, for his novel The Broken Shore
- The 2007 Australian Literature Society Gold Medal is awarded to Alexis Wright for her novel Carpentaria
- Glenda Adams, the Miles Franklin Award winning author of Dancing on Coral, dies at the age of 67 after a long illness
- Bronwyn Clarke wins the Romance Writers of America (RWA) Golden Heart contest for unpublished manuscripts, for her novel Falling into Darkness
August
- M.J. Hyland is awarded the 2007 Hawthornden Prize for her novel Carry Me Down
- Federal Education minister, Julie Bishop, announces that the Australian Government will allocate funds to $A1.5m to create a Chair of Australian Literature in an Australian university
- Charlie Rimmer, Group Commercial Manager for Angus and Robertson bookshops, writes to a number of Australian independent publishers indicating that the bookshop chain will refuse to stock their books without compensation
- The 2007 Children's Book Council of Australia Book of the Year Awards are announced - Older Readers: Margo Lanagan, Red Spikes; Younger Readers: Catherine Bateson, Being Bee; Early Childhood: Libby Gleeson and Freya Blackwoood (illus), Amy & Louis; Picture Book of the Year: Shaun Tan, The Arrival; Eve Pownall Award for Information Books: Mark Norman,The Penguin Book: Birds in Suits
- The winners of the 2007 "The Age" Book of the Year Awards are announced. Fiction: Every Move You Make by David Malouf; Non-Fiction: Colonial Ambition: Foundations of Australian Democracy by Peter Cochrane; Poetry: The Goldfinches of Baghdad by Robert Adamson. Cochrane also won the Book of the Year Award
- The 2007 Ned Kelly Award winners (for crime fiction) are anounced: Chain of Evidence by Garry Disher in the Novel category; Diamond Dove by Adrian Hyland won Best First Novel; Killing for Pleasure: The Definitive Story of the Snowtown Murders by Debi Marshall and Written on the Skin by Liz Porter for Best True Crime; and the Lifetime Achievement Award went to Sandra Harvey and Lindsay Simpson
September
- The winners of the 2007 Victorian Premier's Literary Awards are announced. Fiction: Alexis Wright, Carpentaria; Non-fiction: Danielle Clode, Voyages to the South Seas: In Search of Terres Australes; Poetry: Judy Johnson, Jack; Young Adult: Simmone Howell, Notes from the Teenage Underground
- The winners of the 2007 Queensland Premier's Literary Awards are announced. Fiction: Alexis Wright, Carpentaria; Non-fiction: Professor Tom Griffiths, Slicing the Silence: Voyaging to Antarctica; Children's: Glenda Millard, Layla Queen of Hearts; Young Adult: Judith Clarke, One Whole and Perfect Day
- Stefan Laszczuk is named as the winner of the 2007 The Australian/Vogel Award, for an unpublished manuscript for an Australian writer under the age of 35, for his novel titled I Dream of Magda
October
- Lonely Planet, the iconic Australian publisher of travel guides, is sold to the commercial division of the BBC in a deal reportedly worth $A200 million
- Markus Zusak wins the 2007 Exclusive Books Boeke Prize for his novel, The Book Thief. This is a South African award
- Ladbrook's, a major UK betting agency, lists Les Murray as a 6/1 second favourite - behind Claudio Magris - for the 2007 Nobel prize for Literature. The prize is subsequently won by Doris Lessing who was not listed by Ladbrook's
- Anne Enright's novel The Gathering, is announced as the winner of the 2007 Man Booker Prize
- Steve J Spears, author of The Elocution of Benjamin Franklin and a recent series of crime novels, dies at the age of 56
November
- Shaun Tan is announced as the winner of the Best Artist category in the 2007 World Fantasy Awards
- 9 Australian novels make the extended longlist for the 2008 IMPAC Dublin Literary Award
- David Rowbotham is announced as the winner of the 2007 Patrick White Award
- The winners of the 2007 Davitt Awards (crime written by Australina women) are anounced. Best True Crime and Readers' Choice: Karen Kissane, Silent Death: The Killing of Julie Ramage; Best Adult Crime: Sydney Bauer, Undertow; Best Young Adult Crime: Jaclyn Moriarty, The Betrayal of Bindy Mackenzie; Readers' Choice: Kerry Greenwood, Devil's Food and Karen Kissane
- Eric Rolls, author of A Million Wild Acres, dies at the age of 84
December
- Australia's new Prime Minister announces a major new literary prize of $100,000 in both fiction and non-fiction categories
