Here's my situation and here is the advice i was given:
I am a current expat and I do 2 year contracts outsode australia. I am currently in central asia. There are many other aussies in my workplace.
I am in the same situation as you in that my overseas income is not taxed in my country of residence in central asia. UNder ato rules, I qualify as a non resident for tax purposes as I have the intent (I have a contract and thus intent to fulful that contract) to stay outside the country for 2 years. This satisfies the ATO.
The rules are essentially that i must pay tax then, in my country of residence according to local rules. Locally, becasue of the status of my organisation, I pay zero tax.
The other implication of this non resident status is that you trade CGT free on the ASX as the income you derive from this is taxed at the appropriate rate in you country of residence, therefore I pay zero tax.
Where you pay tax is dividends, and income from rental property you hold within australia, everything else is according to the rules (apparently) tax free.
there are also tax credits you accumulate for being a non resident and buying property in australia and significant reductionsin fees and charges.
All in all it is very profitable being a non resident for tax purposes if you are in a low tax nation - if you find yourself in most of europe, the tax rate is nasty and you are worse off being an expat.
The key part is demonstrating you will not be back - if you can get a contract then this is awesome as it demonstrates you intend to stay away for a particular length of time.
Actually the other great thing you can do is hook up with one of the many international expat financial companies or advisors. they can set you up an offshore account in a tax haven (I have a cayman islands account). This can mean you can operate out of this account and accumulate for many years out of the reach of the ATO or simply use this money for travel etc. Everyone in my organisation has this type of account - it is common and popular and a great way of avoiding tax scrutiny.
Good luck - the expat life is the greatest, particlarly as many organisations will pay your accomodation fees, leaving you one (or in our case 2) fully tax free salary to accumulate/invest with.
