What to do with enclosed 40sqm Code 10a extension

I have an ex council 3/1 with a 40sqm extension. It is enclosed (walls/ windows) with a separate entrance around the back but alas .... council approved as 10a - uninhabitable ("store room / enclosed pergola").

I spoke to council and understand to make it Code 1 (inhabitable) I need to do the damp-proof membrane thing which sounds expensive (room height is fine at 254cm and energy would be fine too I think).

Now I tried to come up with ideas on what to do with this. Has anyone come across a similar probelm? How much does it cost to add this membrane?

http://www.sheds4less.com.au/contents/en-us/d82_Australian_Building_Codes_and_Sheds.html says I could add a bathroom. Could it then be used as an office, for example by a hairdresser, beautician who wants to work from home?
 
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