The midfielder is currently working his way back to full fitness after suffering a foot injury in pre-season against Werder Bremen.
"Then they asked me why did I sign a new contract? For me it is easy. I love it here. My family is comfortable in Liverpool.
"I'm happy with the way everything is going. The gaffer is not just the manager. He's a mentor to the lads. He has helped me on and off the pitch."
Cahill is aware Goodison boss David Moyes has not always been happy with his international commitments, but the 27-year-old revealed Australia will now play second fiddle to Everton.
He added: "I understand me playing for Australia frustrates him (Moyes), but you can never take away what we achieved as a country.
"Now I understand that when I come back from this, maybe I will have to think differently.
"My priority now is Everton and the Australian manager knows this. I'm not in any rush to be thinking about Australia."