Thanks everyone, sorry for the late reply, we have been away. I've measured the distance in the proposed bathroom from the walls to the sides of the window architraves on the 3420mm wall - this space is only 620mm each side, so too narrow for as shower to be run across. It's also 900 high from the floor. In regards to the light over the staircase - let's just say that one of us thought it was too low all along but you know, happy w.... you get the idea. We might re visit that hopefully. That said, I've installed step lighting in the stairwell to compensate. Really great to see some new ideas we haven't thought of for the bathroom though! My concern with yours @oklouise (in adition to the window now interfering with the shower) - is the room with the bath/shower going to be too small? I love the idea of having seperation from the bathroom and the toilet/vanity, but it feels like it would be back to being a couple of tiny rooms just like the current main bathroom is, and for the size of the house, we were hoping for something that felt larger and more spacious, with lots of light. What are your thoughts?

Thanks for the input! do you think that subway or 6x6 tiles would be better in the shower? Im not sure why but i was thinking that the 6x6 might be more consistent with the style of the basin. Dark blue or light blue for the accent tile in niche? Its a VERY small bathroom which was why I was leaning towards white floor. Trying to make it feel bigger. But maybe thats an error. This is the floor tile that I was considering. Too busy? I have to admit I like the dark blue tile of the last photo that Dreamer posted alot but was worried that a dark color would not work in a small space.

Might be helpful if I talk through the parts we like and dislike with the existing rooms: - Lounge: gorgeous old fireplace and morning sun through the windows, great natural light. We spend a lot of time here - Dining: no windows and existing walls block off indirect light from the other rooms, thus why we thought it would be great to knock down some of those internal walls. If that becomes too difficult we'll need to at least do a skylight - Family: my least favourite room, mostly due to the coldness. As mentioned before, its really just being used as storage atm and long term plan is to replace it with something warmer/better constructed - Kitchen: pretty pokey, would love for it to be open with the living, dining and outdoor areas. Great view right onto the backyard from the current kitchen sink windows - Bed 1: gorgeous morning light, pretty happy - Bed 2: gorgeous afternoon light, not really used atm - Bed 3: pretty small, ok natural light. We're using it as a study currently - Bathroom: pretty old and feels abit cramped (that may just be the layout), but doesn't bug us as much for some reason, so happy to leave for later - Backyard: Flat. Very leafy and overgrown. 2 or 3 massive trees, but otherwise mostly shrubs and weeds. We're aiming to tame the weeds, plant some veggies and fruit trees and keep a few chickens for a permaculture/food forest kind of feel :) @oklouise - the block is about 16 m wide and 45 m long. From the front bedroom wall to the front fence is about 10m. From the "Family" room wall to the side fence is about 2.7m. We're in Sydney in quite a leafy suburb so I guess moderate/warm climate? And yes, we are looking into what we can do with the trees with council @Kate - thanks, we had actually thought about rotating the house initially but it turns out with the current orientation, the windows in the Lounge Room and Bedroom 1 get gorgeous morning sun, so definitely keen to keep that. We're doing laundry at the moment in the outdoor shed, which is fully plumbed and yes, existing bathroom is quite old but not bothering us too much at the moment. We're checking with an electrician and a plumber on the general state of things there Thanks for all your suggestions and questions so far - let me know if you have any great ideas!

Thanks - Im thinking something like this could work in my space... still feels pretty open and the big mirror would bring a lot of light/spaciousness...