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)

If you are seeking a truly open feel to the floor plan you have shared, then using one material in the mail living area is the best approach to making this space feel truly open. Using a variety of materials on flooring chops up the space and decreases the visual footprint. I would suggest using wood, tile, or if you are on a tight budget laminated flooring for the living/dining/kitchen. Then use carpet in the more intimate spaces; bedrooms and possibly hallway. Save the tile for the bathrooms.

after watching my daughter and her husband agonize over the way their expensive timber floor has not held up well after 3 years, I would recommend tiles/wood look tiles with under heating. Their beautiful warm expensive floor looks like it always needs a clean and polish, not from neglect, they have cared for it well. One of the boards now has a slight and painful moan when it's stepped on :-( I grew up in a completely wood floor home and although it looked wonderful, my Mother hated it. ....and the mats ! Wood is a lot harder to maintain than tiles ,(no matter what the die hards say) the modern wood finishes are much better than they used to be.... But a piece of wood is rather arty no matter what it's used for and it does demand to be loved and cared for.....and if something goes wrong it's a lot more expensive to fix than sand and cement. Ultimately you have to be happy. BTW underheating tiles is warmer than timber :-)