I have just taken a couple more pictures (excuse the untidy house) from the stairs. As you can see it's an open plan area that isn't that big but very high ceilings also in wood (Macrocarpa) with dark wooden beams. The house is surrounded by bush so quite a dark house. I initially considered a darker wood similar to the beams but not sure if that will make the house appear smaller / darker...I'm really not sure what to do!?!?!? Thanks

Thanks :) Yeah decided to go with tile. So sand cement is ok over existing tiles if I prep them first? Only problem is, the new pad can only be about 30mm at it's thickest (leaving up to 15mm for tiles) otherwise it'll end up being higher than the hallway floor. So I either need to make the fall shallower or not bother with the waste and make it all level. If I made it level, could I use levelling compound at that thickness or would deck mud/sand cement be the best option? Also, should I be putting in mesh for strength? (I know I should (and will) ask the local hardware what they suggest, but it's great to have suggestions from the Houzz community also)

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.

Lino has been used in bathrooms, laundry rooms, kitchens and entranceways for 150 years (it is the THAT old...yep). The traditional checker board (black/white) is quiet "hot" in many areas of N. America...especially when a "retro" theme has been brought in (think 60's Diner). Lino is the old fashioned "vinyl" before plastics were invented. Then plastic was invented and people switched to "vinyl". Now people are moving away from plastics ('cause we've learned a thing or two about the environment) and are going back to the tried and tested Linoleum (Marmoleum = brand name for lino). Lots of fun in the black and white checkers! I think you'll like it.