Nothing in life is as certain as death and taxes, but while you can't avoid the former, you can definitely reduce the impact of the latter with tax-reducing benefits that your business may qualify for.

Inevitably, the more revenue your business earns, the more taxes you will have to pay. Fortunately as a small business owner, the tax office offer a range of exemptions, offsets and benefits that can make your financial life a little easier.

Here are a few of the tax-reducing benefits you can apply for:

Entrepreneurs tax offset

For businesses with less than $50,000 of aggregated turnover, the Entrepreneurs Tax Offset (ETO) can offer a tax offset equal to 25% of payable income tax. Businesses with higher than $50,000 in turnover will have their ETO gradually phased out until turnover reaches $75,000, after which the offset will no longer apply.

Note that individual business owners (including sole traders, partnership members or trust beneficiaries) must pass an income test of about $70,000 for singles or $120,000 for individuals with a family.

However, you should keep in mind that the ETO can only reduce your tax - it cannot be used to defer taxes, refund unused tax offsets or be transferred to another individual. For more information about the ETO, visit the ATO's information page.

CGT benefits

Capital gains tax (CGT) is the tax paid on capital gains, the most common being sales of assets such as property, shares or goodwill. CGT is not treated as a separate tax, but instead forms part of your tax income. For more information on CGT, visit the ATO website.

As a small business owner, you may be eligible for CGT concessions and exemptions under certain circumstances. The ATO offers four possible CGT concessions:

• Business owners aged 55 or over who are retiring or permanently incapacitated may be eligible for exemption on assets owned by the business for at least 15 years.
• When selling active assets, you only need to pay tax on 50% of the asset's capital gain.
• If you are aged 55 or over, you can be exempt from CGT on some assets. However, business owners under 55 must have capital gains paid into a superannuation or retirement fund in order to be eligible. The lifetime limit of retirement exemption assets is $500,000.
• If you plan to replace an asset or improve an existing one, you can defer all or part of the capital gain. Note that there are a number of conditions attached to rolling over capital gains.

Write-offs

In late 2011, Federal Assistant Treasurer Bill Shorten proposed a number of tax law amendments for small businesses as part of the Tax Laws Amendment Bill.

Part of these amendments will deal with asset write-offs. Starting from the 2012-13 financial year, small business owners will receive a number of new or improved tax write-offs:

• Immediate write-offs on assets valued under $6,500. These can include any tools, equipment or furnishings used in your business, from computers and mobile phones to desks and fridges. This allows your business to claim immediate deductions from these assets, rather than having to depreciate them over a longer period. Previously, businesses could only write-off assets worth $1,000.
• Immediate write-offs for motor vehicles acquired from the 2012-13 financial year (up to $5,000), with the remainder to be written off at 15% in the first year and 30% in the following years.
• Write-off of other assets in a single depreciation pool at a rate of 30% (with 15% in the first year.
• The company tax rate will be lowered from 30% to 29%. This only affects incorporated businesses.

However, you should note that these amendments are dependent on the passing of the mining tax legislation. If successful, the changes will take place from 1 July 2012.

For more information, visit the ATO website  or the Australian Chamber of Commerce and Industry.