Do You Pay Tax When You Sell Secondhand Furniture in Australia?
Selling unwanted furniture usually isn't taxable in Australia, but buying to resell, selling genuine antiques, or selling furniture used in a rental or business can change that. Here's what the ATO's rules say.
Quick summary
Tax on selling secondhand furniture in Australia usually isn't an issue when you're clearing furniture you bought for your own home. The ATO treats casual sales of unwanted personal items as generally not assessable, and personal use assets such as furniture acquired for $10,000 or less are exempt from capital gains tax. Tax can apply if you buy furniture to resell, sell genuine antiques, or sell furniture used in a rental or business.
For furniture you bought for your own use, the answer is usually no, with a few exceptions. Two questions settle most cases: did you buy the piece to use it or to resell it, and what did it originally cost you? The sections below work through the ATO's rules for each, where selling becomes a side hustle or business, and what records to keep.
Is There Tax on Selling Secondhand Furniture in Australia?
According to the ATO's online selling guide, selling unwanted personal items that were originally bought for private use, rather than for resale, will generally not result in assessable income, and related expenses aren't deductible. One ATO example describes a seller who raised $800 selling old clothes, toys and electronics on an online classifieds site, then stopped listing. That was not a business, and the money wasn't assessable.
The guide separates three situations:
| Situation | Typical example | Income assessable? |
|---|---|---|
| Casual sale of unwanted personal items | Selling a sofa, table or wardrobe you no longer need | Generally no |
| Income-producing activity that isn't a business | A side hustle buying items at garage sales to resell | Generally yes, with eligible deductions |
| Business | Planned, regular reselling to make a profit | Yes, plus obligations such as an ABN and GST |
Being in business isn't the only test of whether income is assessable. The ATO says a side hustle that isn't a business can still produce assessable income, while a casual sale of unwanted personal items generally doesn't.
What if you sell furniture online? Selling through an online marketplace, including a local one like Zirkly, doesn't by itself make the income taxable. If you're selling your own unwanted furniture, the same personal-use rules generally apply. If you buy furniture specifically to resell it for a profit, the activity can instead produce assessable income even if you're not running a formal business.
What Is the Capital Gains Tax Rule for Furniture?
The ATO's list of CGT assets and exemptions names furniture as a personal use asset, meaning an asset you keep for your personal use or enjoyment. A capital gain on a personal use asset is subject to CGT only if it cost more than $10,000 to acquire, and capital losses on personal use assets are ignored. If you sell items individually that would normally be sold as a set, the $10,000 test applies to the whole set.
Collectables follow different rules. The ATO's list includes antiques, artwork and jewellery, which are subject to CGT unless you acquired them for $500 or less. The ATO's ruling TD 1999/40 says an antique is generally an object of artistic and historical significance of an age exceeding 100 years, assessed when you sell it. A piece that is merely old or vintage, but not over 100 years old, isn't an antique for this rule.
| What you're selling | Gain on sale | Loss on sale |
|---|---|---|
| Furniture kept for personal use, acquired for $10,000 or less | Disregarded | Disregarded |
| Furniture kept for personal use, acquired for more than $10,000 | May be taxed | Disregarded |
| Antique (over 100 years old) acquired for $500 or less | Disregarded | Disregarded |
| Antique (over 100 years old) acquired for more than $500 | May be taxed | Can offset only gains on other collectables |
Most household furniture bought for the home falls in the first row. If you're selling a high-value piece and aren't sure which category it fits, ask an accountant first. Our guide to vintage vs secondhand furniture explains how age and origin affect value.
When Does Selling Furniture Become a Business?
The ATO says no single factor decides it. It weighs the overall impression of your activity:
| Factor | Looks like a casual sale | Looks like a business |
|---|---|---|
| Why you're selling | Clearing unwanted items | Making a profit |
| Where the furniture came from | Bought for your own use | Bought to resell |
| Frequency | Occasional, stops when done | Regular and ongoing |
| Organisation | Ad hoc | Planned, with records and advertising |
Reselling doesn't have to be a full business to be taxable. In another ATO example, a teacher earned around $4,000 in profit buying items at garage sales and op shops and reselling them on online marketplaces. The ATO said it wasn't a business, but the amount was assessable income that had to be declared.
If you are carrying on a business, the same guide says you need an ABN, and you must register for GST if you make over $75,000 annually. Our guide to furniture flipping in Melbourne covers the reseller side in more detail.
What About Inherited, Rental or Business Furniture?
Furniture you inherit follows its own ATO rules, so check before selling anything of high value. Our deceased estate furniture guide covers the practical steps.
If you used furniture to earn income, such as in a rental property or business, check with an accountant before you sell it, because the sale may be treated as income or a deduction rather than a CGT matter. The ATO's CGT list explains that CGT doesn't apply to depreciating assets used solely for taxable purposes, such as business equipment and items in a rental property. Gains or losses on those assets are treated as assessable income or deductions instead, and CGT may apply if you also used the asset privately. If you're selling furniture from a business, see our guide to selling office furniture in Melbourne.
What Records Should You Keep When You Sell Furniture?
Even for a casual sale, a short paper trail is useful:
- When you bought the item, what you paid, and a receipt or listing if you have one.
- The sale date and price.
- Messages with the buyer confirming what was agreed.
- Photos of the item and its condition.
If you buy to resell, also record every purchase and expense. The ATO says businesses should keep records for at least 5 years.
Where to Sell Secondhand Furniture in Melbourne
The tax rules above don't change with where you sell, whether that's a garage sale, an online listing or a marketplace. Our guide to garage sales vs selling furniture online compares the trade-offs. Before you list on Zirkly, browse a suburb page such as Richmond to see what similar pieces are asking, then set your price using our secondhand furniture pricing guide. For a full clear-out, see how to sell your furniture in Melbourne.
So, Do You Pay Tax on Selling Secondhand Furniture in Australia?
For furniture you bought to use and no longer need, the ATO's position is that you generally don't pay tax on selling it, and personal use assets acquired for $10,000 or less are outside CGT. The picture changes if you buy to resell, sell genuine antiques, or sell furniture used for income. This is general information, not tax advice, so check with an accountant or the ATO if you're unsure.
Clearing out furniture you no longer need? List it on Zirkly and connect with local Melbourne buyers.
Frequently Asked Questions
Do I pay tax when I sell secondhand furniture in Australia?
Generally not, if you're selling unwanted furniture you bought for your own use. The ATO treats casual sales of unwanted personal items as generally not assessable, and you usually don't need to declare them. Tax can apply if you buy to resell, sell genuine antiques, or sell furniture used in a rental or business. This is general information, not tax advice.
Where can I sell secondhand furniture near me in Melbourne?
Local marketplaces such as Zirkly let buyers browse by suburb, which suits bulky furniture that buyers collect in person. Garage sales and markets are other options. The tax treatment is the same whichever you choose.
Is there capital gains tax on selling furniture?
Furniture you keep mainly for personal use is a personal use asset under ATO rules. A capital gain is subject to CGT only if you acquired it for more than $10,000, and capital losses on personal use assets are ignored. Items normally sold as a set are tested together.
Do I pay tax if I sell furniture for more than I paid?
Not usually. If the furniture is a personal use asset that cost $10,000 or less, the ATO says to disregard the capital gain. Genuine antiques, which the ATO generally treats as objects over 100 years old, are collectables and are exempt only if acquired for $500 or less.
Can I claim a loss if I sell furniture for less than I paid?
No. The ATO says capital losses on personal use assets are ignored, so you can't use them to reduce other gains or claim a deduction.
Is selling antique furniture taxed differently?
It can be. The ATO treats a genuine antique, generally an object of artistic and historical significance over 100 years old when sold, as a collectable. Collectables are subject to CGT unless acquired for $500 or less, and a capital loss on one can offset only gains on other collectables. Vintage furniture under that age isn't an antique for this rule. For valuable pieces, check with an accountant.
When does selling furniture become a business?
The ATO looks at the overall picture, including whether you're making a profit, selling regularly, buying items to resell, and organising the activity like a business. Occasional clear-outs are different from planned, ongoing reselling. A side hustle can also be assessable even if it isn't a business.
Do I need an ABN or to charge GST to sell secondhand furniture?
You need an ABN if you're carrying on a business. GST registration is required once your GST turnover, which is gross income rather than profit, reaches $75,000, according to the ATO. A casual sale of unwanted furniture doesn't involve either.
Sujith
Zirkly Team
Sujith is the Founder of Zirkly, Melbourne's dedicated secondhand furniture marketplace. He writes about Melbourne's secondhand furniture market, consumer behaviour, and the circular economy, drawing on his experience building Zirkly and what helps furniture listings sell across Melbourne.
