Donald returns when he hears Seb and his girlfriend Jade Sutherland (Kate Garven) were injured in a car crash caused by Duncan (Brendan McKensy), Alf's son and Seb's first cousin removed. Seb is left paralysed and Donald offers to fly him back to the Whitsundays and look after him. Donald also returns in 2005 for Alf's 60th birthday party where he forgives Duncan after he apologizes about the accident he caused the previous year. In late 2007, Donald returns to Summer Bay as the new Vice Principal of Summer Bay (ironically working for Sally, who served under him during his tenure as Principal) but he soon resigns, saying that he cannot handle the students anymore. He decides to retire yet again, this time for good and he got the next available flight back to the Whitsundays, never to return to Summer Bay. Donald reveals he has since divorced June and has gone bankrupt. After borrowing some money from Alf and Morag, Donald goes to visit his former wife, Marilyn, in England after learning she is suffering from cancer.