I'm not a fan of wallpaper, though I'll admit there are some powder rooms on Houzz with beautiful, two-tone wallpaper that I love. The last time we bought a house we had to choose between two equally desirable, quite similar vintage houses--one with wallpaper on every wall (even in the hallways!) and one with painted walls throughout. In both cases we planned to repaint in colors of our choice, but we bought the house without the wallpaper because it was simply less work to repaint the painted walls than to strip a house full of someone else's tacky, outdated wallpaper. So by all means use wallpaper if you love it and will be in the home for awhile, but don't expect anyone else to appreciate it when you sell. Wallpaper (like patterned fabric) is just too individual a preference to translate easily into someone else's aesthetic.

Changing the curtains to a white or cream that matches the rug would look great, then match the cushions on your lounge to your curtains, and add in a splash of colour on the walls. If you want to keep the curtains that's fine. The rug is gorgeous but you need to flatten it out with piles of books so you can't see where it's been folded. Use cushions with a circle on them to match the curtains. If you hang a painting it needs to have the colours of the cushions, curtains in it. Try to find cushions with a circle pattern with at least one colour the same as your curtains. Buy a cheap canvas from the reject shop, Use the same colours of your cushions and curtains to paint circles on the painting. Draw the circles with a compass. Then paint circles on the canvas that match the curtains and the colours you have decided to use as the cushions. I think the curtains have restricted your colour use so if you don't want to replace them with something plain use the curtain and cushion colours. The rule is either 3, 5 or 7 colours. Cheap and easy . Remember to prime the canvas with white paint before you start. Another way is to cover the canvas with a wall paper that has circles the same colour as your curtains or cushions. You don't need to paper the edges just the front. Laura Ashley has some gorgeous wall papers and so does Hauzz. It's not difficult and would match the colours you have alraedy in your home.

Ok, the shop I'm referring to is called WallCandy & they have a branch in Sydney. Here are the details: Address:2 Danks Street, Waterloo 2017 Phone:(02) 9331 5884 Email:sydney@wallcandywallpaper.com.au

I like Siriuskeys suggestion....but also have a look at the Houzz article "this goes with that'. I think if you really wanted floral a small blue and white design could look ok...but I think it would much more interesting with a more geometric design instead. Room sounds like it will be lovely.