Green’s Dictionary of Slang

diddy n.2

also didee
[? dunny n.2 (1) but see diddy adj., i.e. the ‘little room’]

(Aus. juv.) a lavatory.

[Aus]F.J. Hardy Yarns of Billy Borker 56: Having the didee in the backyard isn’t very convenient.
[Aus]F.J. Hardy Outcasts of Foolgarah (1975) 97: In a strange place, they can’t find the diddy quick enough.
[UK]J. McDonald Dict. of Obscenity etc.