I loved the master, wir and ensuite in your first design, the new layout will appear cramped and lacks comfortable flow. The wall separating the retreat will make the space feel smaller and less usable, and the 2.5m retreat depth is too small to watch tv. Make sure your designer shows you 3d views and walk throughs for this space to make sure you are comfortable with it.
Other things to consider -
1)Your powder room door is too close to the dining room, and there is a direct line of sight. Try to make this more hidden, you can take space from the butlers pantry which is oversized, and create a small hallway to the pdr.
2) I agree with the other user about making the design more suitable for multi-generational families. For resale value there should be a generous master suite on the ground floor. At this budget the purchaser should have the option of which floor they prefer to have their bedroom on. Especially since there is no lift.
3) Small thing, just consider that the flue from the GF fireplace needs to extend up through the second floor. This will affect the view from the upstairs stair landing.
Good luck with your build and design process, I will enjoy following it!
Thanks for your comments.
Point 1 - noted
Point 2 - I totally understand what you are saying but we are maxed out with GFA on the ground floor, so not sure how to make that downstairs bedroom any bigger. It has been hard fitting everything in, The room is 3.3 x 3.3 clear which isnt too bad for a mother or father in law with their own bathroom. Otherwise we have to sacrifice the office and everyone wants an office these days.
Pont 3 - Noted. We should be able to flue this sideways through the joists. We will figure out a way but it wont be up.
Thanks again for your input
Cheers
Simeon