I’m generally a bath advocate but in a townhouse I think space for the shower and vanity is more important. Do you have the budget to move the plumbing? Assuming you’re on a concrete slab moving a toilet is doable but more costly. You’ll save if you can leave the wastes where they are.

Bathroom is on the first floor so just on timber flooring. We have the budget so just trying to get an idea of the best layout for the space

I think removing that oversized bath shower combo would be a positive. Do you have a laundry trough? Any babies can be washed with a baby bath in the trough, then from standing age they can have a shower, with a parent. So if there is a young family in the town house, they can adapt to not having a bath.

The 1900mm is a good length for a double vanity. Install drawers in vanity and overhead mirrored cabinet on the wall.

Make sure you run the shower along the entire 2000mm wall. You will need a 1200mm glass shower screen, and leave 800mm for walk in. Any smaller than the 1200mm shower screen, you may find there is water spray over the floor, which is annoying and dangerous.

2 bed does not need bath. If it is for a family then generally yes but not oversized tub.