On 13 February 1978, a bomb concealed in a street rubbish bin exploded outside the Hilton Hotel in George Street, Sydney, where the first Commonwealth Heads of Government Regional Meeting (CHOGRM) was being held. The device detonated at 12:40 a.m. as the bin was being emptied into a garbage truck. Garbage collectors Alec Raymond Carter and Arthur William Favell were killed instantly; police officer Paul Burmistriw, who had been guarding the hotel lounge entrance, died later. Eleven other people were injured. Twelve foreign leaders staying at the hotel, including the Indian prime minister, were unharmed. Prime Minister Malcolm Fraser deployed the Australian Army for the remainder of the meeting.
The bombing has remained highly controversial. Witnesses and later inquiries raised questions about whether Australian security agencies, including ASIO, could have had foreknowledge or involvement, citing an unexplained continuous police presence near the bin beforehand, the failure to search or empty the bin despite it overflowing, the withdrawal of army explosive-detection dogs shortly before the event, and the disposal of the garbage truck and bomb fragments at an unrecorded location, which prevented forensic analysis. The NSW Parliament unanimously called for a Commonwealth inquiry in 1991 and 1995, though no such inquiry was held. Separate accounts, including a 2016 book by Rachel Landers and a 2019 book by Imre Salusinszky, argue against a conspiracy, pointing to the number of independent witnesses who would have needed to be complicit and noting the confession of Evan Pederick.
Investigations initially centred on the Ananda Marga organisation after informant Richard Seary infiltrated the group. Seary's evidence led to the arrest and 1979 conviction of Ross Dunn, Paul Alister and Tim Anderson over an alleged separate plot; Anderson was also linked to the Hilton bombing at a 1982 coronial inquest, which found a prima facie case of murder against Dunn and Alister but not Anderson. A 1984–85 judicial inquiry led by Justice Wood, prompted by doubts about Seary's reliability, recommended pardons, and Dunn, Alister and Anderson were released in 1985 and compensated.
In 1989, Anderson was re-arrested, tried and convicted specifically over the Hilton bombing, receiving a fourteen-year sentence. In 1991, the NSW Court of Criminal Appeal, led by Chief Justice Gleeson, quashed the conviction and entered a judgment of acquittal, finding the trial had miscarried because the Crown's principal witness evidence and an unsupported theory presented to the jury were unreliable. Evan Pederick, who had confessed to planting the bomb, was convicted and served eight years; his 1996 appeal was rejected, and he was released in 1997. Gleeson's judgment separately described Pederick's account of events as "clearly unreliable." The prosecutions of Anderson and his co-accused have since been cited in Australian legal literature as examples of miscarriage of justice.
A memorial plaque was restored at the bombing site in George Street and unveiled on the 30th anniversary of the attack on 13 February 2008.