Stella,

Unfortunately, the fact that your father became an Australian citizen before you were born means that he did not pass Italian citizenship on to you. The reason is that Italy did not allow dual citizenship until 1992. Before that, becoming naturalized in another country resulted in automatic loss of Italian citizenship. For more info, look here:

http://www.italiandualcitizenship.com/

Of course, if you can remain in the UK (which I would think would be allowed as the spouse of a UK citizen) and become a UK citizen yourself, you will be allowed to live and work anywhere in the EU, including Italy.

See here:

http://www.ukimmigration.com/family/uk_citizenship.htm

 

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