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Wet particle board ... weetbix .... expensive. Check further around the floor, rooms next door etc as it wicks through underneath and spreads the crumbling effect. Mate of mine had it, major rebuild to two bedrooms and a hall. He always wondered why the house was always damp but then he also left it too long to do anything about it. Had to lift walls and refloor about 20% of the house. No kidding.
Get underneath and check the extent of the crumbling. Lift carpet, peer in closets.
Bathrooms are one of the most expensive rooms in the house to renovate. Sorry, not good news I know. Sooner you fix it the better.
I've done my own bathroom and Kitchen renovations in the past. Messy and still expensive. Not sure what your best options are over in Aust.
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