End of Financial Year: How Home Staging Costs May Be Treated When Selling Your Property

As the end of financial year approaches, many property owners begin reviewing the costs associated with selling and how those expenses may be treated from a tax perspective.

One question we are often asked is whether home staging can be claimed at tax time.

While staging is widely recognised as a strategic investment in presenting a property for sale, its tax treatment can depend on the type of property, the ownership structure, and the seller’s individual circumstances.

Staging as a Selling-Related Cost

Home staging is generally not something property owners should assume is an immediate tax deduction.

For investment properties, some selling-related costs may be treated as costs of disposal and may form part of the property’s cost base, depending on the circumstances. Depending on your situation, some costs associated with preparing and marketing a property for sale may be considered when calculating the property’s cost base or capital gain.

In practical terms, this means staging may potentially reduce a taxable capital gain, rather than being claimed as a direct deduction against income.

Because the treatment can vary, it is important to seek advice from a qualified tax professional before making assumptions about how staging costs will apply to your situation.

Investment vs. Owner-Occupied Properties

Tax treatment can differ depending on whether the property is an investment property or your main residence.

For owner-occupied homes, the main residence exemption may apply, meaning capital gains tax may not be payable in full, or at all. In these cases, there may be limited or no tax benefit associated with including selling-related costs.

For investment properties, selling-related costs may have a more direct impact on the final capital gains position.

Following the 2026-27 Federal Budget, proposed changes to Australia’s capital gains tax system may affect how some investment gains are calculated in future years. These proposed changes are due to apply from 1 July 2027 and may affect future planning for some property owners.

As tax legislation and government policy can change, property owners should seek advice tailored to their individual circumstances.

A Strategic, Not Just Financial, Decision

While tax considerations can be part of the conversation, home staging should ultimately be viewed as a strategic decision within the broader selling campaign.

A well-presented property can help create stronger first impressions, attract more buyers, support the marketing campaign, and present the home in a way that helps buyers understand its full potential.

For many sellers, the value of staging lies not only in any potential tax treatment, but in the role it plays in helping the property stand out in a competitive market, maximise buyer appeal and support a stronger sales campaign.

Planning Ahead for EOFY

If you are considering selling in the new financial year, EOFY can be a useful time to review your selling strategy and speak with your professional advisers about any financial considerations relevant to your circumstances.

Understanding how staging and other selling-related costs may be treated, alongside your agent’s advice regarding timing, market conditions and presentation strategy, can help you plan with greater clarity and confidence.

Important Disclaimer

The information provided in this article is general in nature and is intended for informational purposes only. It does not constitute financial, legal or tax advice.

The treatment of home staging and other selling-related costs can vary depending on individual circumstances, including property ownership structure, residency status, whether the property has been used to produce income, and the tax laws in place at the relevant time.

Tax legislation and government policy can change over time, including proposed reforms announced in the 2026-27 Federal Budget. We strongly recommend seeking independent advice from a registered tax agent, accountant, financial adviser or legal professional to understand how these considerations apply to your specific situation.

Want to find out more about home staging?

The Crave Home Staging team can help you present your property to its full potential, ensuring it stands out in the competitive Perth market. Reach out today to talk to our team – complete the form below, email info@cravehomestaging.com.au or give our friendly team a call on 1300 733 566.