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He is clearly violating your privacy and may even be stalking you. In Australia do you have something equivalent to a restraining order? Basically if he continues to violate your privacy you can go before a judge and have a restraining order taken out on him.
What it does is that he has to keep a certain distance from you and if he violates it you can have him arrested without questioning.
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Thank you for your response. Yes I will look into this and see if this action can be taken in Australia as I do feel threatened and uncomfortable when I am at home knowing he's looking over the fence all the time. I feel like a hermit having to keep my blinds shut in my own home.