peanutter.
The time you log as mutual flight time is still logged in your logbook as command. You can
not log co-pilot time.
Read 40.1.7 again. I quote: "...one pilot must be nominated as pilot in command but both pilots may log all of the flight time during which mutual practive is undertaken as counting towards the flight time requirement" (the requirement been the 50 hours). This implies quite clearly that both pilots log 100% of the time. The requirement should also be written into your company part E - CASA won't approve your training operation without it.
The 'instructions' in your logbook are as useful as the text on the back of a box of fruit loops. Disregard them.
just a cessna trying to get a little time on type for para ops. Now, according to the front of my log book all of the time I log as ICUS is counted towards my grand total flying hours and my total aeronautical experience. So that answers that question.
I can't think of how you can legally justify logging ICUS whilst conducting para ops,
especially in a single, and definitely not if it's a private operation and/or VFR.
You are making mistakes with the logging of your flight time. Rather than continuing to make your own (incorrect interpretations) I suggest you get some advice from your CP, CFI or FOI.