A member of one of the motorcycle gangs, Crawford Montazano (nicknamed Nightrider), escapes from police custody by killing an officer and stealing his vehicle. Max pursues Nightrider in a high-speed chase, which results in Nightrider's death in a fiery car crash. After the dangerous chase (which results in injuries to a number of officers), the police chief warns Max that Nightrider's gang will be out for him now because of Nightrider's death.
Nightrider's gang, which is led by Toecutter (Hugh Keays-Byrne), plans to avenge Nightrider's death by killing MFP officers. Meanwhile, they vandalize property, steal fuel, and terrorize the citizenry. While chewing up a town where the the Nightrider's remains arrived by train, the gang brutalizes a civilian couple that tried escaping to the road; the couple is overtaken, then both of them are raped and the car is wrecked. Max and his close friend and fellow officer, Jim Goose (Steve Bisley), are informed about the incident and go to the crime scene. They find Toecutter's young protegé, Johnny the Boy (Tim Burns), and the girl of the couple in the middle of the wreckage. Johnny's drug-fueled rantings reveal him as a member of Nightrider's gang; Goose looks on Johnny with particular disdain, as his leg was broken during the Nightrider pursuit. However, they do not kill Johnny, but arrest him and drag him away in chains.