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If you want to make it bigger then you go L shape and add a bedroom out the LHS of the bathroom and put the living in the current garage bit

So you want to convert the garage to a GF? Or do you want to make it bigger? If it complies under the conversion codes - I'm not up on the NSW SEPP codes - but talk to Brazen or NHG etc. Anyway if it does comply then you could just kit out that big section into a studio style GF and...