Since you're in Australia, I wonder if you've just described my neighbors? Lol.
You've done the right thing in contacting the local council, and quite frankly, with my neighbors, I'd much rather contact them before confronting the offending people myself...but I'm scared of most people and I'm strange. I do think you're being a tad too sensitive though, because it's not constant, and it's only for a few seconds each time. Now, if it were at unGodly hours such as 3am and continued for long periods of time (I'm talking 30 minutes to an hour...constantly) then you wouldn't have too much of an issue complaining...the entire street would be upset most probably.
But concerning the time and space between each, you really are being too sensitive. Dogs bark, that can't be stopped and certainly it sounds ridiculous to be upset over them barking for less than a minute each time and during the day no less. What I would be more concerned about though, is her not exercising them enough, but, you've said she never takes them for a walk...how do you absolutely know this? Perhaps you don't see her when she takes them, or you're out of the house at the time. She may also take them in the mornings, or very late in the evening. For you to know she never does, you must be watching her constantly...and that would be beyond excessive.