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Budget 2022: The Government has announced Budget 2022, which includes changes to child support payments. Find out more on our Tax Policy website

Budget 2022: The Government has announced a Cost of Living Payment, which will be paid from 1 August 2022. You do not need to apply for this payment. If you are eligible, we’ll pay it into your bank account. Find out more

If you're a major shareholder in a close company, on the last day of the company's income year, you may need to include income earned by the company as income for Working for Families and student loans.

If your spouse or partner is a major shareholder in a close company, they also need to check if any income earned by this company needs to be taken into account in working out your family's Working for Families entitlement. You may also have to include the voting interests (shares) of dependent children.

If your company has made a deposit to, or a withdrawal from, a main income equalisation account during the income year you will need to adjust the “company’s total income” used in the calculation below to account for it.  

Main income equalisation scheme deposits

Main income equalisation scheme refunds

Who a major shareholder in a close company is

A major shareholder in a close company is anyone who fits any of the following descriptions:

  • They own, or have the right to acquire, at least 10% of the ordinary shares of the company.
  • They have the power to control, directly or indirectly, at least 10% of the ordinary shares of the company.
  • They own, or have the right to acquire, at least 10% of the voting interests in the company.
  • They have the power to control, directly or indirectly, at least 10% of the voting interests in the company.
  • They have, in any other way, 10% or more of the control of the company.

Working out income

There are 2 sets of calculations for working out income. Make sure you use the right rules when calculating the amount to be treated as income for:

  • 2015 tax years onwards
  • 2014 and previous tax years.
Last updated: 28 Apr 2021
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