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Issue around Gap between Neighbour Wall and Retaining Wall

last month

I bumped onto this site which had a discussion on the gap between wall and retain wall dating back to 2014 but thought if I could get some insight or reflection from someone experienced like you. Our build is on higher elevation. We had retaining wall as per approvals from local council (City of Vincent Perth WA) done by our builder. The retaining wall is around 500mm high and runs along lot boundary with my neighbor for 9mts roughly from the lot front corner. The ground sand level is at the top of the retaining wall now (1 course above is the weeper) and the ret wall is 970mm from our wall where my neighbor has started building on the adjoining lot and was meant to be zero lot wall to our retaining wall. Due to the concrete posts, they have built their wall in a way which has created a gap of over 100-130mm. This has resulted in the total gap between my neighbor's garage dbl brick wall and our wall as 1075mm. We are planning to landscape with steppers and stones on this stretch that runs to the back yard but now the gap between the neighbor's wall and our retaining wall is giving a headache as I am unsure as to how do I go about it to cover the gap. There is a slat gate getting installed where one of the pillars close to the neighbor's garage wall would be set butting with my retaining wall with non expandable grout so that it can stand strong with the gate lock on this pole and the person doing the job have said that there will be a 5-10mm gap between the pole and the neighbor's brick wall. The pole that would hold the gate would be on my wall.Any suggestions or thoughts on covering the gap as I read somewhere that you cannot fill it with stones as they would hold moisture and then damage the wall of your neighbour. You can never ever touch your neighbour's wall as it is a part of the house and it the garage external brick wall of my neighbour. If I install a fence it would lead to installing it inside the retaining wall which reduces the gap from 970 to 850 with the dead space being now over 200mm between my fence and neighbour's wall. Its an added cost with no pleasing outcome as it will be a narrow passage now with a fence. Please can I get some ideas on what could the best way.

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