Hi again Kathleen. Just wondering what is presently dividing your shower recess and toilet? Found the attached photo which may help throw a different perspective - forget a wall. The worst of the splash will be in the alcove and if you have the shower rose on a rail, this does minimise splashing, as you could turn it away from the toilet. The rose is also height adjustable to also reduce splash. I would still put a glass door at the end of the solid wall though, to divide the two areas, create some privacy and it will make the shower cosier in winter. You say you have retired and appear to be looking at this as your forever home, then this would give you good options if the worst happened and one of you became partially immobile. It creates a large area for a shower chair to be used and room for a carer to assist. Horrible thought I know, but sadly one doesn't know what the future will bring. Will even make toilet access easier - down the track you may even need to fit a commode over the toilet. There are taller toilets now too, great for wonky knees. The only issue would be keeping toilet paper dry, but I think the alcove will assist with that. The more open area will also make cleaning a lot easier. With respect to a wall hung vanity, they are lovely, but they are also more expensive to install and I don't know how easy it would be on a cement wall. Putting the bowl on top of the bench space, does give you more drawer space, a recessed bowl will take up most of the top drawer. There are many different sized bowels these days, so it is easy to keep it to a basic size to give you vanity bench space or alternatively, you can generally off-set the bowl to create a larger space on one side. With respect to the bench top - I think any shiny surface needs constant care to keep it looking great, it all shows water marks and spills, but with just the two of you, it should not be difficult to wipe it after each use. I keep an absorbent cloth beside my vanity for this purpose and there is never any BIG clean. I have to laugh at the black vanity top - one of my joeys had black marble on her kitchen bench that was flecked with gold. I never got used to it - I was always "cleaning" the "crumbs" off the bench top. You can also use a painted glass for a bench top if you really like the reflective look of glass - similar to what is used for kitchen splashbacks now. With the age of your unit and the concrete walls, I think I would be inclined to leave the door where it is, you would have no idea what could be in that wall. You could however, simply remove the door to open the vanity area to the hallway and then put a towel rail on the wall beside the vanity. I agree with Pazz on a corner storage unit if you need storage, it won't intrude at all into the area, anything else could be a nuisance. [houzz=]

Is the wall load bearing?

based on the accurate dimensions the most economical update would be to replace the spa with a shower over bath, keep the existing vanity and toilet, reuse existing taps and retile but, any bath renovation is always much more expensive than imagined, and the unexpected expenses (eg asbestos under tiles) can add up and a minimum of ten thousand for a very modest upgrade wouldn't be surprising...If the bathroom is in acceptable condition especially if there's any possibility of a future expansion towards the backyard that could affect the current position of bathroom and laundry) i suggest (subject to confirmation from a plumber) that you consider reorganising the other spaces and sacrifice the wiw to create an ensuite with linen storage taken off the middle bedroom..surprisingly an extra bathroom could be less expensive than renovating the old one but i would still allow at least $10,000 with careful planning

We renovated our 2400x3000 bathroom with a layout along the lines of Siriuskey's suggestion. We allowed 900 for bath (includes space to get mop in around back -use a narrower built-in or back to wall style free-standing to conserve on width) 900 for shower (could go down to 800 since elbow room is 'shared' with bath). We have extra space around the toilet, so your slightly smaller dimensions should be ok. We have towel rail opposite shower (with a heating vent to keep the space warm when drying off plus help dry out the shower cubicle), but they could be placed above bath if vanity needs to go there. Pic below from just after screen install.