Born in Sussex, England, Hayes moved to Australia at the age of 5. He began his career as a journalist, working as the US correspondent for the Australian newspaper The Sydney Morning Herald.
Terry was married in 1999 and has one son Connor.
After periods spent as an investigative reporter, columnist and radio show host, Hayes met director George Miller when he did the novelisation of the script to Mad Max (1979). He and Miller got on well and the director subsequently hired Hayes to help on the script for Mad Max 2 (1981).

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