Growing wines up a trellis running along the back fence will work wonders. Then a nice dining setting and barbecue with prep bench to one side.

Love the space. Here are some ideas that I'd bookmarked for myself:

I can see three bays of open structure, effectively created by the posts. They outlook to a triangular yard without any dimension or perspective because of it's size.
To address this the area needs to have defined function or form to improve it's overall look. With a tight budget, spend the money on practical high impact as you know, I suggest building two mobile units that consist of a treated pine box frame to he lower part with vertical frame on the back, to clad this I would use stained timber battens or merbau so the bottom box component will be either a box storage seat or a planter box. My preference is to say a seat. The frame on the back would extend two thirds the height of the posts, so it still retains a top window for light and frames the structure. Given these frames would be on lockable castor wheels, they could be in place to close in each end of the bays, leaving he centre open as a doorway to the garden.
They could be moved when entertaining back to back to create a division, or at each end or an L shape at one end to create a lounge, making the spae versatile all year round dependent on weather. They also would not restrict installing outdoor OCD blinds if required. Now for the fun part.
In one of these mobile units, the back screen should have a window sized open cutout, that will allow a view out to the garden beyond, I'm thinking the left hand side, to play on perspective, like looking through a kaleidoscope. On the lawn I would dump a few square meters of topsoil, and mound a Esther large hill at this end, planting an established tree, like a japanese maple with perhaps round edged garden beds to the perimeter, this will mask the size of the block. Use silver birches along the fence line, they grow large wNd allow lots of light through, the white trunks are beautiful features when base lit. Having a tree on a hill raises it to viewing point, and makes you Wang to walk out to a natural environment. Ground covers are good alternatives to a lawn, mosses and crushed granite paths that curve from start to end, all the wAy using colour and layering of height and foliage.
Add a ceiling fan to the roof, outdoor furniture and close in the ends of the space, the bbq end i would say stud frame a solid wall here to screen the neighbours and provide an enclosed cook station, clad the frame with exterior blue boars or FC sheet, then paint it black and to finish it i suggest getting hold of some firewood, cutting the logs into 40-50mm rounds like tiles and adhering them to this board, it will create a stunning feature and cast glorious light over the wall. Its natural so will age well, withstand the elements and be a constant talking point, all for the cost of some basic framing and some firewood. Without a big budget you need some creativity to pull off a beautiful space that really impresses. The other end with a framed section of concrete rio, this is the perfect climbing frame for espalier or a fruit vine etc. Cushions to brighten up the mobile seats and potter plants in groupings along the house line. These mobile screens could also hang some small suspended pots for herbs for he BBQ end,

last one moved around.

Easy to see in these images how the mobile differentiates yours your outdoor area. This is just one configuration, I'm sure you can picture them in many different positions.

@midesign0401,
Megan, You are positively amazing, this reno idea is absolutely stunning and providing drawings of the actual property, makes it so easy for jody05 to envisage exactly how the transformation would look rather than seeing pictures of other peoples designs.
It's so much more personal and much easier to see in a picture than reading detailed written instructions, outstanding!!!
You must tell me how you propose to lift the Maple to such a height on the pictured raised bed, again stunning???

Thank you barabra for your kind words. I agree sometimes an explanation is far too exhausting, and would result in way too many typos. My brain mfires quicker than my fingers. So a render works best. I would create little hills with mounds of soil to raise the tree up, I'd create a few actually, so it looks three dimensional and plays on the angled perspective of the block. Concealing the flat ground will help retract the perimeter line, and give an illusion of bigger space.

I love mldesign's idea. Love tree in garden, even small garden.

Hello Jody
In order to keep your costs down, may I suggest a few things that will give you instant appeal while not costing the earth.
I would get rid of the existing garden, put down a rubble base and then lay Lillydale Toppings on top. This then needs to be compacted. Once this is done, the concrete from the covered area will then move directly out onto the new surface. So the extension of this similar surface will make the area appear bigger.
I would then define a garden bed 1.3 metres from the fence around the area and plant either Pittosporum Cut Above which is a wonderful native Pittosporum with rich green foliage, or one of the many Lilly Pillies. These can be pollarded so that the width doesn't encroach on the Topping area. You can either leave the under space clear or plant something that doesn't get too big the full length of the Pittosporums.
In the 90 degree corner you could use a big, bold pot as a statement maker - it doesn't have to have any plants in it as the right pot will make the statement.
I would group other pots in the covered area so that your eye is directed to these and not areas that you are not quite so happy with.
Alison