Stephen was the eldest of three children born to Dave Gottlieb (David Murray; Ivar Kants) and Sally Dawes (Jane Little; Helen Rollinson) on a hippy commune. He was christened Freedom, but as they grew up, Stephen and his brother Mark rejected their parents' ways, while their younger sister, Serendipity (Raelee Hill) embraced them. When Stephen became the manager of a record store in Elliot Park, he proposed to long-time girlfriend, Libby and she accepted. One night at a party, Mark spiked Stephen's drink, leaving him unable to drive Libby home. Mark, also ended up too drunk to drive Libby himself, forcing her to take a cab. Libby died when the cab crashed and Stephen blamed Mark for her death. After Mark left for France to train as a chef, Stephen finally felt he could move on with his life.