This chapter investigates four topical issues in the Australian law on damages for breach of contract. Two issues relate to the common law and the other two issues relate to statutory intervention. The first issue is the impact of the 2013 decision by the High Court of Australia in Clark v Macourt, which may give fresh impetus to some or all of the theories of substitutionary damages for breach of contract. Secondly, the chapter discusses whether, in cases of defective building work, damages in the amount of the cost of repair can be awarded where that cost not only exceeds diminution in value but is also out of proportion to the benefit that would be obtained from repair. The third issue is the statutory regulation of damages for non-pecuniary loss. The fourth issue is the statutory imposition of proportionate liability, as opposed to solidary liability, in certain circumstances.