On his return to Australia, Lowndes again won the 1997 Sandown 500 for HRT, partnered by New Zealander Greg Murphy. Together with back to back race wins at Sandown in the enduros. He resumed his racing seat with the Holden Racing Team, alongside new teammate Mark Skaife, shuffling Greg Murphy into a test-driving role. Lowndes again proved difficult to catch and went on to win the 1998 Championship, although the premature debut of the VT series Commodore would cruel his Bathurst campaign.