A plunge pool gives you the best of both and allows you to maximise the space and your budget. Adding gas heating and spa jets and even a swim spa jet to a plunge pool would really complete this goal.

Breaking up the great solid block of colour a little bit helps to hide it. Next is the choice of what to plant. I'm leaning towards: ficus pumila, climbing fig, which can be pruned to hug the fence tightly, Himalyan blue bamboo, (but might sprout on other side of fence as well, so should have a 60cm deep root guard or be planted in pots) or waterhousia floribunda, weeping lilypilly, which can be pruned to a narrow, non-climbable hedge but 30cm might be about as narrow as possible. I'm just a bit scared the bamboo will move into the neighbours yard too...You also have to be careful to not plant anything with massive roots that could eventually crack your pool, and it has to be tough enough to cope with a bit of chlorine... Then, put in a dip line so you don't have to water such a narrow spot. Good luck, and let us know what you decide.

Thanks everyone for your further comments. No problem about it being an old post, always nice to communicate with people about design solutions/problems. Jilly, I posted some photos on 1st January 2016, they appear further up in the post. Garden Beet Pty Ltd, and Morel Construction Ltd, both of your solutions look great, but our problem still remains the western Queensland sun which is pretty vicious on anything that will either wilt, fade or break down. It was quite a difficult challenge to come up with something that was affordable, workable and durable. I would love to have had plants because I believe they soften large "hard" exterior areas, but we have decided that we will do that with pots around the pool area. Still have that to do, even after all this time. :) Thanks everyone for re-igniting this chat. Jilly, hope you find something that works for you.

Also, if you take a look under the "Find Pros" tab on Houzz you can search for tradespeople in your area - tilers, landscapers etc.