Understand 'dunny' as informal slang, so it's best used among friends or in casual settings, not formal occasions. When you're at the barbie, just ask where the dunny is if you need the loo.
Pro Tip 2/3
Often Outdoors
'Dunny' usually refers to an outdoor toilet, possibly separate from the main living area. The dunny is out back, so you might need a torch if you go at night.
Pro Tip 3/3
Cultural Nuance
Embrace the Australian cultural essence when using 'dunny', as it's a quintessentially Aussie term. Visiting rural Australia, you'll notice many homes still have the classic dunny.