wheel/tyre option for 500 SEC?

1985 500 SEC I just bought has 245/50.16 on rear & 225/50.16 on front One alloy is dented badly & spare is mismatch in offset Tyres are shit What other sizes can I put on - standard is 205/70.14
This seems dodgy to me - how can a 16 replace a 14 inch? Anyone in Australia have a decent set to replace these?
thanks for any advice
Macgregor
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