As per neilsenplanning, please keep the traditional elements. Perhaps this recent ideabook will give some ideas.

https://www.houzz.com.au/magazine/my-houzz-traditional-queenslander-gets-a-fresh-us-style-face-lift-stsetivw-vs~30903025

or this one https://www.houzz.com.au/magazine/how-to-give-a-traditional-queenslander-a-modern-makeover-stsetivw-vs~29773544

Firstly I would have to ask if you bought this cottage because you truely love "vintage" or did you buy on a budget with the sole purpose of renovating to A. keep it traditional or B. make it so modern the the very hint of it ever being traditional will be almost unrecognisable in the end???
If you in fact love traditional, there are ways to make it modern enough to suit but still retain enough of a "traditional" feel in any single room or space, as to still be able to see the homes"roots"
For example, retaining high ceilings, or ornate cornices, timber floors or timber windows etc...
If your reasons are to make it modern but maintain tradional, then definitely seek professional help to get it right and that may only mean paying someone "once" to tell you what you should or shouldn't do to make the transformation successful.
The picture provided by carthiefintexas is outstanding, showing traditional timber and unusual ceiling heights but with that most gorgeous kitchen/dining table albeit that this picture appears to be that of an inclosed barbecue/outdoor eating area and an add on to the existing home.
Even the outside of your home, if council permits, can be partly traditional and partly modern but again, you really need to seek help so as not to get it wrong.
Would love to know what you really want for this home???
For instance, if it's on acres and you are going to have pets, traditional homes look and feel more like you could let the dog in so to speak, if you know what I mean, versus a fully transformed modern home that the dog can only look at through the double glazed windows with perfect white tiles and a perfect white couch etc... etc...ha-ha!!!

We renovated and extended a 100 year old cottage also. We kept everything as traditional as possible, including the windows and wall structures. However, we did add a very modern kitchen and bathroom and ensuite, as well as a very large entertaining deck. It completely works and you can definitely have the best of both worlds. Here is our home... http://www.realestate.com.au/property-house-qld-ninderry-117635507

Well done Melody, a great job on you home and something real and not imagined for missmin to look at for ideas and or guidance.
I can see you've maintained things like the timber windows with simple window coverings.
The timber floors are magficent although I supect new not original???
You have very good taste and put colours together that I would have not though of.
Am I right that the wall colour in the kitchen seems to be a light grey??
I've seen other Houzzers put chocolate with gray and it looks great and I would never have put those two colours together.
You have done a similar thing with your timber floors being in that brownish tone.
Extremely well done, would never know on the outside that the home looks so modern on the inside.

Hi. We have just had plans drawn for our workers cottage renovation. Ours will keep the old house at the front in the traditional style, but our whole extension comprising master, kitchen, living room etc will be completely modern. It's quite a contrast but it will be awesome! Good luck with yours.

hi thanks for all ur help we do love the vintage but also want a modern feel about the house... we will b adding an extension to the back of the house so really trying to find the happy medium which I worry about being my first serious reno... we r looking to live in it so r willing to spend more...

Definitely keep the vintage, but that doesn't mean you can't mix it up with modern colour, pattern and furniture.