I was thinking of switching lounge and dining then realised your entry goes straight in where the lounge is .. Leave your dining suite where it is.. I'd move the TV to the wall with the two paintings..then your three seaters against the window lengthwise and put your two arm chairs L configuration to that.. pop your coffee table on the rug so it's grouped if it was me I'd get a modular to fit better..

It keeps life interesting to have a Summer setting taking advantage of the view and outdoors, then a Winter setting keeping thoughts inside. The room seems large enough to cater for a few seating arrangements. A 3-seater sofa and two armchairs (which can sit together with a small table between) and a coffee table in centre (to cater for kids play time (have a shelf underneath to quickly hide toys in a basket. Then in Summer the 3-seater with it's back to thecupboard wall - although leaving traffic space and maybe a table where the heater was for flowers and framed photos. Then a decorative chair or two to add spice - even a couple of dining chairs look good against a wall, they can look like artwork. Image 1: this is a clever way to hide a TV. Image 2: interesting chairs together Image 3: Great wall unit and tonal colouring. TV's come as mirrors and artwork these days. Image 4: Dining chairs against the wall and walk space behind sofa to outdoors. A TV is behind the sofa, so not being the focal point.

imo the biggest challenge/cost would be removing all those big solid walls, changing doors and windows and repairing ceilings and not the extra plumbing (new bathrooms and kitchen cabinets, fixtures and appliances cost the same regardless of the extra few metres of pipes) and a new location can make the most of the available space but it can sometimes be more cost effective to add an extension rather than attempting to squeeze too much into an existing building but you need an engineer, builder and plumber to give expert advice on site ... better not to assume that one option is better than another but collect a variety of ideas and ask for quotes to compare actual prices but do you have a realistic budget? i would expect to pay at least $50,000 for a modest new kitchen and bathroom in the same locations before removing any walls or adding an extra bathroom and new laundry and the combined ens/wiw is too small and would be better to have a good sized ensuite with biw and there's not enough space for a bigger island without compromising space in the family dining area...there are so many different options but we need more info...are there any good or bad views, what is the length and width of the block, is there a garage, is there car access into the back yard, what is the distance from the house to each boundary, describe your climate, where is north on the plans, how many steps are there from the back and front doors to the ground, does the block slope and in which direction, how much headroom is under the house and in the roof space...is there any potential for an upstairs, downstairs or an extension into the backyard?

Just make sure that you are comfortable sitting and not in great need of s cushion. Cushions are great, but if relied on for support while prolonged sitting over 20 minutes, forget it and go for good back support. These days the settee are for lounging and lying on not sitting in a comfortable posture. They are often too deep and too low. Best advice, set aside 6 hours for lounge shopping, sit for at least 10 minutes in your choice, keep on going back and having a sit. Never purchase that day, but see how your back is. Then go back. They are an investment in ‘no back’ trouble.