Australian teenager Jessica Watson is on track to complete her quest to become the youngest person to sail solo around the world.

The 16-year-old from Queensland’s Sunshine Coast is now in Australian waters.

She is expected to pass Cape Leeuwin off the south-west coast of Western Australia this morning.

In her latest blog, the teen sailor said she celebrated the milestone with Vegemite on crackers.

“I found a few squid on the deck again … another one jumped on board just I was thinking about lunch so I got brave and decided to have a go at eating it,” she said.

“Then I finished up with Vegemite on crackers to celebrate being back in Australian waters!”

Watson said it was a memorable point in her journey.

“Hot chocolate in hand … a light sprinkling of rain and with an albatross circling above, it was one of those really special moments,” she said.

But there is still a small way to go before Watson’s journey comes to an end.

Next week she will pass under the Great Australian Bight and head south to Tasmania.

She cannot take a short-cut through the Bass Strait, as it would mean a few days with little or no sleep due to shipping and islands.

“It’s weird being so close, but still having so many miles to cover,” she said.

It is believed she will arrive in Sydney in about three weeks.

Prime Minister Kevin Rudd has welcomed Watson back to Australian waters.

Mr Rudd says Australians are proud of what she has achieved.

“Here you have a young Queenslander, a young Australian who’s shown great courage, great determination, and I believe is an inspiration for all Australians,” he said.

“Jess, it’s fantastic to have you back home.”