Thank a lot for your response, rammygirl.
I get most of it for what you have said. But still have some confusion:
For the case, one being in Australia from Jan 2014- Jan 2018 --- Total Absence= (375 days)
1. Spend 10 days more and apply for immigration by Jan 12, 2018 ?
2. Or the new time frame will start from 1 Oct, 2014- 1 Oct, 2018 because the law is to be present in Australia atleast 3 out of 4 years.
I hope I had addressed my concern appropriately.