Claiming styling furniture and decor in a short-term rental
The presentation of a short-term rental property directly affects your occupancy rate and nightly price. Investment in styling, furniture, art, and homewares is a real business cost — and it is deductible.
Furniture
As covered in the furniture guide, all standard furniture items are Division 40 plant and equipment. For styling purposes, common additions include:
- Designer chairs and accent pieces
- Side tables and decorative furniture
- Mirrors and display shelving
- Benches and ottomans
Artwork and wall art
Artwork purchased for a short-term rental that is expected to be replaced or has a limited useful life may be depreciated. The ATO's effective life for artwork that is replaceable (prints, canvas reproductions) is typically around 5-10 years.
Note on collectables: Original artwork that is a collectable (likely to appreciate in value) has different tax treatment and may not be depreciable in the normal way. If you purchase a significant piece of original artwork, seek advice.
Decorative items and homewares
Plants (artificial), vases, cushions, throws, candles, books, and similar decorative items are typically:
- Immediately deductible if cost per item is under $300
- Low value pooled if between $300 and $1,000
- Depreciated on effective life if over $1,000 per item
Kitchen and dining homewares
Crockery sets, glassware, cutlery, cookware, and kitchen accessories are plant and equipment:
- Individual items under $300: immediately deductible
- Full sets over $300: depreciated as a group (assess as a single asset if purchased together)
Professional styling services
If you engage an interior stylist to source and arrange your property, their professional fee is a deductible service cost (immediately deductible operating expense). The furniture and items themselves are still depreciated according to the standard rules.
Apportionment
All styling assets must be apportioned if you also use the property privately. Items used exclusively during guest occupancy can potentially be argued as 100% rental use during rental periods — but the overall apportionment based on time still applies.