Oh bloody hell they get WORSE!!!! Totally unrelated to the previous films, this story concerns a group of marsupial werewolf folk living in the Australian outback in a village named Flow (that's WOLF spelled backwards in case you didn't realise).
One of them, a young girl named Jerboa (Immogen Annesley), decides to the leave the village and head for the city. Where she is befriended by a boy named Donny (Leigh Bilos) and they quickly fall in love. However, it isn't too long before the authorities find out what she is, and after discovering the whereabouts of her village, quickly move in and capture the inhabitants.
Jerboa however manages to break out of the hospital she's being held in and heads back off into the outback with Donny. With the help of a sympathetic Professor (Barry Otto), who has fallen in love with a werewolf himself, namely a Russian Ballet dancer that got captured after transforming in the middle of a performance. Together, they try and shake off the soldiers that are in hot pursuit.
Directed by the same guy who did Part 2, this in-name only sequel is best forgotten and is another great comedown from the original. No-one appears to even try and take the film seriously, and since when were werewolves supposed to have pouches in their chests like Kangaroo's? There was an interesting scene where the search party gets wiped out by a werewolf, and some soldier tries to take it out at point-blank range with a rocket launcher (thought you needed silver bullets?). But apart from that, there's not a single thing worth watching about it.
Also features a guest appearance from that unfunny drag queen Dame Edna Everage (Barry Humphries), that's all the more reason to avoid this.