Mattiebodie, I think that's a good idea. Lots of different styles work together but I think no matter how they were arranged, those chairs and sofa might just continue to fight with one another. Too bad there isn't an office or bedroom where the sofa could work! When you're ready to look for a new sofa, please post pics of the ones you're considering. We can sure try to help by discussing style, color, just how to best place everything in the room, etc. Hopefully you could get it all figured out before you spend any money.

If you want colour a different coloured rug would work eg Aqua tones. But for black and white tones the rug you have is great. The pattern draws you eye and adds to the room

Thank you for your comments and your sympathies, it is a difficult room to work with. But there is a light at the end of the tunnel, behind the far wall is an enclosed garage which is used as a storage space and we are in the process of getting a shed built to move everything out of there and extend out, so the room will become more of a rectangle rather than a square and everything should fit into place nicely! We have tried different variations of furniture placement which did look nicer but weren't practical for the age of our kids, like Lego at our feet when sitting on the couch etc. I think we will leave the furniture as it is for now, however I love some of your ideas. Good point about the shag, that's gone, I will have a look for a low pile wool rug. choices flooring have some nice styles I like. I hadn't thought of incorporating a blue or terracotta toned rug, that could work well to better hide stains. I love the idea of artwork, what would you suggest, something abstract? Incorporating colours from the room or more a statement piece? I also love the idea of adding more circular elements and also a lamp to add height. Do you have any suggestions for either one? I'm also concerned the room is a bit impersonal, do you agree? Please keep the ideas coming.

Lots of lovely inexpensive rugs on overstock.com and they ship to Australia. I have used them twice and rugs arrived in a week.