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My understanding was that ikea and Masters kitchens were pretty good for the money but bunnings were not as good quality

I would remove that bulkhead entirely & pull it back to the wall. L shaped bench more or less as is, large island to use some of that waste centre space. Pantry cupboards on the wall between the two doorways.

very hard to gauge layout from those photos- can you add some more or a rough floor plan? I would remove that bulkhead, blocks light & view lines. As to permits for removal, likely not but would need to check it does't have anything structural in it.