Revealing mistake: When Nullah and his mother are being pulled out of the tank, the stitching on the dummy used for the mother is visible.
Continuity mistake: When Drover and Ashley are parading in the rain at the ball, there is a shot of Drover's all white clean shirt, specifically the arms. When they dance in the mud after it starts raining, it has some mud stains on one of the arms. Cut back later and the shirt is clean again.
Factual error: Outside the Territory Hotel, during the storm, and once earlier in the movie, the taxi cabs are shown with the modern "flip over" vacancy/hired signs that were not used then.
Continuity mistake: Shortly before the big cattle drive arc begins, Kipling Flynn pours a teacup full of rum for Lady Ashley to drink. The camera cuts to an over-the-shoulder view as Lady Ashley starts to tip back her teacup; at this point, you can see that the cup is completely empty.
Factual error: One can read in the newspaper "Standard" dated from Monday 11 May 1941 the headline "Germany urges Japan to enter war". The text below says that Germany urged Japan to attack the USSR as Berlin broke the non-aggression pact the previous month. But Germany attacked the Soviet Union on 22 June 1941, so the newspaper article should be dated July 1941. Besides, this information was top secret and could not have appeared in a newspaper in May 1941.
Continuity mistake: In The Territory Hotel, after the bombing of Darwin, Drover invites his aboriginal friend into the bar for a drink. The barman pours half glasses of rum, but when they lift them to their lips, the glasses are full.
Other mistake: In the scene showing Fletcher hanging over the wreckage of an anti-aircraft gun after he was speared, the camera flies up above the gun looking directly down the barrel. The plug welded into the barrel to deactivate the gun under Australian gun legislation can be seen.
Factual error: In the scene where the Japanese are attacking Darwin, the American Battleship USS Oklahoma is shown being bombed and torpedoed. The USS Oklahoma capsized after being attacked at Pearl Harbor several months earlier. This appears to actually be a piece of a scene from the 2001 movie "Pearl Harbor".
Continuity mistake: When Drover is swinging the lasso in the rodeo pen, he starts off with the lasso in his right hand. In the next shot it's in his left, and in the last shot it is back in his right.
Revealing mistake: When Fletcher is killed by King George, the spear can be seen as computer-generated; Fletcher swings his arm back and forth, through the spear. At one point, he even pauses, with the spear in his arm.
Factual error: At the beginning of the film, the map of Europe is not from September 1939, which should be showing Nazi Germany, including east territories and Austria. It's from 1993 or later, showing the democratic Federal Republic of Germany after its reunification. The modern map has just been covered by a Nazi flag.
Other mistake: The union jack being raised at the beginning of the movie is actually being raised up-side-down - a very common error. Wide white band must be uppermost near the pole.
Continuity mistake: During the cattle drive Nullah starts out by riding a Skewbald (brown and white) horse but in subsequent shots the horse is Piebald (black and white). In later scenes the horse remains Piebald but the pattern of the markings changes between shots indicating that the pony was actually grey.
Other mistake: The stirrups on the horse that Nullah (the young aboriginal boy) finds at the beginning of the movie are perfectly adjusted to his leg length, even though the previous rider was an adult.
Factual error: The cattle used in the film are a Santa Gertrudis cross breed. These were originally bred in USA & brought to Australia around the 1960's.
Factual error: The Australian Army slouch hats worn in the film show a folded cotton puggaree. An unfolded felt puggaree was replaced by the folded cotton puggaree in 1942, mostly mid to late 1942. The soldiers are shown wearing the folded cotton puggarees in late 1941 and February 1942.
Continuity mistake: As Lady Ashley and Ramsden are walking in to the horse stables, while discussing the sale of Faraway Downs, you can see the background of a servant, along with a serving cart, and one closed door that would lead further in to the stables; as the two walk away from that scene, take notice that the background has changed - it now has a wheelbarrow full of hay, the door is open, and the servant and cart have disappeared.
Continuity mistake: As Mr. Fletcher is riding up on horseback to greet Lady Ashley, you can see him riding up next to a parked, red truck, that has the front end pointed away from the house. Keep an eye on that truck, because it will have the front end pointing towards the house, as Fletcher gets closer to Lady Ashley.
Revealing mistake: When Lady Ashley tells Drover not to bother returning, tracks made by very wide tires are visible in the road as he rides off. Vehicles of that era had very skinny tires, so the tracks are likely from the filmmaking crew.
Continuity mistake: When Lady Ashley meets Kipling Flynn in his shed, he pulls out a new bottle of "Poor Fella Rum". When he pulls the cork out, it is a different bottle shape and almost completely empty, but then it goes back to a full bottle.
Other mistake: When Nullah rides the murdered Boss's horse to the station ranchhouse, he arrives at the hitching post with one rein already tied to the post.
Factual error: Paspaley Pearls not established as a company in Darwin until 1946, yet one of the buildings bears a sign for this company.
Continuity mistake: When Nullah and his mother are rescued from the water tank, the characters are shown swimming around inside the tank (which obviously involves getting wet!), yet when they are pulled out, Nullah's jumper is completely dry.
Plot hole: At the beginning of the movie, Lady Sarah Ashley's husband is killed before Nullah rides to Faraway Downs. There he sees Sarah go into the home and find her dead husband. This would mean that somebody had to recover his body and transport it to Faraway Downs faster then Nullah, who went straight there following the murder.