Everyone sings "kum ba yah" and even Geraldine, Babe and Lee's douchey co-worker and boss put aside their nastiness to celebrate the good, happy tidings with the entire square.
Max, initially wanting revenge, forgives the blessed saint Beales declaring "Christmas is the time for forgiveness and new beginnings" after the blessed saint Jane tearfully gives Max a hug and a pressie crying "I'm sorry, please forgive me I've suffered enough!"
And Santy Claus is revealed to be Deano who has now become a born-again Christian regretting his evils ways wanting to make amends and because it's the magical day of Christmas everyone forgives him, even Roxy and Linda.
The episode ends with Dot "hilariously" tripping over a bunch of bins (because as we know the bin storyline was so damn funny the first time), mutters "Oh no, not the dastardly bins again!" Then starts to cheesily laugh, the entire square cheesily laughs along with her, Julia Theme plays and that's the end of the Christmas special.