Elections to the Australian Capital Territory Legislative Assembly were held on Saturday, 21 February 1998. The incumbent Liberal Party, led by Kate Carnell, was challenged by the Labor Party, led by Wayne Berry. Candidates were elected to fill three multi-member electorates using a single transferable vote method, known as the Hare-Clark system. The result was another hung parliament. However the Liberals, with the largest representation in the 17-member unicameral Assembly, formed Government with the support of independents Michael Moore, Paul Osborne, and Dave Rugendyke. Carnell was elected Chief Minister at the first sitting of the fourth Assembly on 19 March 1998.

Anne Katherine Carnell is an Australian businesswoman and former Liberal Party politician, who served as the third Chief Minister of the Australian Capital Territory (ACT) from 1995 to 2000.