Yes, rake the needles (and gravel) onto the path, before improving the soil, and periodically during the off-season for the flowering plants. They tend to restrict growth and do not add to the appearance of the foliage or flowers, don't you agree? Not sure what does well in your area, but here's a list to take to your garden center that might brighten your day, and cover the ground. Cotoneaster dammeri, Juniperus conferta 'Blue Pacific", Euonymus fortunei 'Coloratus", Asperula odorata, Dianthus gratianopolitanus "Bath's Pink", Adiantum pedatum, Ophiopogon japonicus, Parthenocissus tricuspidata or quinquefolia (I forget which one climbs up the trees, but get the other one), Most of the above will do well in any pH soil, so don't be afraid to sweeten it, if advised to locally. I would not plant all these together, but you have plenty of room to match up good companions in each area. Some, like the junipers like a little more sun to make you smile. That should get you started in covering the ground. The local folks will be eager to sweeten the list, I am sure. Enjoy the process. Involve your family and friends. Nobody does it alone.

Looks like buffalo in the second lot of photos but it also looks like you could have some couch in there too Buffalo is a great wearing lawn but it is hard and scratchy and kids don't like playing on it too much, unless it is Sir Walter, which is a more friendlier version and the most popular one now. It will respond well to a sandy type of top dressing - black river sand is really good if you can stand the mess for a few weeks while it settles - a sandy soil will give the runners something to grab onto and grow and this is what buffalo needs. I would leave the couch in there for now but dig it out as the buffalo runs to achieve a really even lawn. The buffalo will probably choke most of it out too but do try to control weeds early as it is harder to get them out when the lawn is established and many weed killers will kill buffalo too. Buffalo is very much a surface grass so the clay won't bother it but it will affect your lawn in terms of run off and water absorbency. With winter now approaching, there won't be a lot you can do but study run off over the coming months and where the water pools, time it takes the grass to dry out after rain and then decide just how much you need to do to control water problems. Maybe just running some agriculture piping around the edge of the paving will solve your problems or there may be other areas some piping can help drain quickly. Nothing worse or more irritating than water problems, so it is really worth the effort fixing them in the coming months ready for next spring, the problem will be fixed forever and you can focus on letting the lawn grow. There are quite a few websites with tips on growing buffalo and problems you need to watch out for. This one gives good tips on mowing heights too, which is very important, especially in your heat. If you mow it too low the sun can burn it and kill it. http://softleafbuffalograss.com.au/buffalo-lawn-care-and-articles/maintaining-buffalo-lawn.php

I agree with jbantick. The stone in the outside area looks quite nice, but the area itself seems to be quite separate from the porch, which is a different colour and higher. It also doesn't seem to connect to the driveway area either, so it looks like a bit of an afterthought. Could you have the stone removed and kept, then dig up that whole area , probably bring in some new soil , add lots of compost, and create a garden with the beautiful birches as the centrepiece. The stone can be used as stepping stones through the garden, to join up the front path with the driveway. Shade loving plants will vary a little bit depending on where you are, some won't tolerate frost for example, but could include things like rhododendrons and azaleas and camellias. Also some ground covers like violets and cyclamen. There are also shady plants suited for warmer areas , which often have large structural leaves. Walk around your area and see what is used in similar areas to yours, talk to your local nursery people , and read gardening magazines. With gardens, a bit of hit and miss is normal, so don't worry if it doesn't work out perfectly the first time.

Start by spending a portion of your budget on the various dream feature items that are relocatable and can be used in your final design anyway. e.g. Buy the firepit you really want - it can become the focal point of your future garden. Test it outside in your backyard for a few months. Are heaps of mozzies annoying you while you're sitting outside around the firepit? If so, then you'll know that you're going to need a gazebo with flyscreens as well as privacy curtains so you can really enjoy lying outside in your hammock year round. The hammock is another relocatable part of your design. First, lie outside in your backyard on a swag or a rug for a few hours. Is it too windy? Is there road noise? Keep experimenting until you've found the perfect location for the hammock. Then buy an inexpensive hammock and suspend it from a couple of sturdy RL4 poles. If it's working, then this is the place where you should build your future patio, that's going to shelter your hammock. Keep testing inexpensive versions of your other ideas out. Trial tea candles or a string of inexpensive white Christmas lights as garden lighting. Do they create the feel you want or do lights just attract moths or unwanted insects? What about relocatable solar garden lights? Or a portable floodlight from Bunnings? Where's the ideal place for your garden table and chairs? Test it out with inexpensive camping chairs - or chairs you already own for a few months to be sure. Then invest in the perfect outdoor table and chairs. Same with the water feature. Start with a wine barrel with a waterlily or a second hand pond off Gumtree. Can you hear the trickling water in the garden or do other noises crowd it out? Keep in mind big goldfish need deep water and space to swim. To help you in your choice of plants,look around your immediate neighbourhood. What purple, blue and scented plants are thriving in your immediate area? Who has the best garden in your street in your opinion - and why do you think that? Do you always see a particular neighbour passionately working outside in their garden? That's the person you should strike up a conversation with to get advise about suitable plants for your immediate area. Chances are they will not only give you heaps of free advise but they will probably give you plants and cuttings as well. Markets are another source of perennial plants that grow well in the local area. Plant these smaller plants into large plastic pots and garden bags and allow them to grow for a year or so. Consider herbs as filler plants - many are highly scented, can be used in cooking and often have interesting foliage e.g. choc mint, fennel, rosemary etc. After you've been using your backyard for at least a year and you've experienced all of the seasons, then invest in your big ticket items like your gazebo. Buy or build a structure that's truly practical for your local microclimate - incorporate glass, windbreak fencing, shadecloth, mozzie mesh or whatever you need to make your hammock shelter ultra comfortable. Build this structure where you've tested it and know it will work - not where a stranger who designs gardens thinks it should go. Spend the remaining money on the things you know you need and want - the stones, plants, irrigation, a birdbath, etc