Option 1 is fine but you have no vanity space and these tend to look poky in smaller bathrooms. This is a smaller bathroom, this can be eliminated with say frosted glass walls. But you are changing a bathroom for one that is similar sized, worst case mirror the WC over so it gets some ventilation. Option 2 are you kidding me a full length window in the shower? where is the entry to the master? is it coming off the living room? Option 2 good use of the hall, but the planning of a free standing bath in this small main bathroom will make it appeal smaller is there no shower in this option? If you are going to the expense of making wall changes, what about taking the bath out to the eaves, if you have them which will give you 600 mm more space? If the master is coming off the living room? If the overall internal dimension is 4.2 M and you need say 900 mm for entry to ensuite and 100 mm walls, that leaves you with 3.2 M for ensuite. Looks like you are taking out lots of walls, so to me if you changed the access to the WIR and ensuite to the other side, the vanity can be near the full length window, which solves the water issues of it being in a shower, and it would be nice to be pushed out the 600 mm like the bathroom, and if you were willing to give up say 300 mm of space from the bedroom side, 4.2 x 3.1 than you could have hanging space (which goes into that proposed new access point), on two sides and then a total wall of storage in shelves or drawers or places to put shoes and bags and ties and smalls on the ensuite side.

no problem if the space is 600mm wide and at least 900mm to 1200mm long so you can hold your arms out to wash but why not consider the walk in shower with an old fashioned shower curtain instead of the glass screen...we used extra tall curtains (2.1m) from Spotlight and the extra length improves the feeling of space and are several hundred dollars cheaper than any other option

Thanks siriuskey for your suggestions. I don't really know what style my taste/style of house is really. I like the simplicity of mid century furniture and have a mid century Parker sideboard. Other than that, the house is a bit of a blank canvas at the moment. (the kitchen is fairly modern though with almost white glass splash back, white cupboards, and stone bench tops that are in a colour like Caesarstone Osprey (but are essastone). I do like things from the late 1950's/1960's.....and I like Audrey Hepburn. I also like the Parisian type black n white art from that era. (but I also like naive art - big colour artworks of people or animals that look like they have almost been painted by a child). If I had the money I would buy a high ceiling mid-century home like they have in USA (a modern yet mid-century Brady Bunch style home). My house is a 1962 chamfer board on concrete posts and batterns around the bottom and currently just has satin polished mixed hardwood timber floors throughout. Most of the walls are either natural white as in the study or snowy mountain quarter strength (and in smallest bedroom - half strength russian toffee). Because I am always scared that things will date if they follow trends too much, I always seem to do fairly conservative or timeless things in house renovations and rely on the furniture and accessories to add colour and style. (I like the idea of renovations and the ripping out of old stuff to create something new, but I really don't like have to make all the creative decisions etc along the way)......so I do appreciate it when I get advice from others. I have printed your suggestions and will have a look at them. (I guess the barn door look is actually similar in concept to some of the timber veneer sliding doors seen in midcentury homes). Thanks again.

To close out this conversation... we decided in the end to have a separate powder room and this is where the layout is sitting currently. No feedback needed, just thought it would be good to close the look. Thanks for all the help.