Payday Super Is Coming: How It Could Impact Your Business Cash Flow

From 1 July 2026, all employers will need to pay super on payday. This is a great step for employees, but for businesses, it may mean more frequent super payments and tighter cash flow.

Now’s the time to start thinking ahead - planning early can save stress and avoid last-minute surprises.

Why Cash Flow Matters

Currently, most small businesses pay super quarterly, which allows a buffer between paying employees and paying their super.

Once payday super starts:

• Super will need to be paid each payday.

• Cash leaving your business more frequently could impact:

  • Payroll timing

  • Supplier payments

  • Day-to-day expenses

For businesses with large payrolls or high super contributions, the impact can be significant.

Steps to Prepare Your Cash Flow

1. Review your pay cycle:

   • Consider weekly or fortnightly pay runs and how that aligns with your cash flow.

2. Build a buffer:

   • Start saving a little each month to cover more frequent super payments.

3. Improve debt collection:

   • Faster invoicing and chasing overdue payments can help ensure cash is available when needed.

4. Check payroll software:

   • Make sure your system can calculate super for each pay run and integrate with your clearing house.

5. Plan for larger contributions:

   • If you have staff with higher super entitlements, consider how this will affect cash flow throughout the month.

Other Considerations

• The Small Business Superannuation Clearing House (SBSCH) will close on 30 June 2026. Make sure to set up a new clearing house or payment process in advance.

• More guidance from the ATO is coming on qualifying/ordinary time earnings — staying informed will make the transition smoother.

Conclusion

Payday super will affect cash flow, but with early planning, your business can transition smoothly. Start reviewing your payroll processes, building a buffer, and improving cash collection now to avoid surprises next year.

💡 Tip: If you haven’t read my first post on payday super basics, check it out here → https://bit.ly/4owpCD1

What Is Payday Super and Why Employers Need to Know About It

From 1 July 2026, Australia is changing the way superannuation is paid. For employers, this means super contributions will need to be paid every payday instead of quarterly.

If you’re a small business owner, it’s important to understand what this change means for your business - including payroll, cash flow, and compliance.

What Is Payday Super?

Payday Super is exactly what it sounds like: super contributions are paid at the same time your employees are paid, rather than every three months.

The change is designed to help employees grow their super faster and reduce the risk of unpaid super. For employers, it means adjusting your payroll processes to make sure contributions are sent on time, every time.

Who Does This Affect?

All employers with employees are affected - large and small businesses alike.

If you currently pay super quarterly, you’ll need to switch to making payments each payday.

Why It Matters for Employers

While this change is great for employees, it does have implications for your business:

• Cash flow: Smaller businesses may need to manage their cash more carefully to make regular super payments.

• Payroll processes: Your payroll system may need updates to ensure super is calculated and sent every pay run.

• Compliance: Failing to pay super on time can result in penalties from the ATO.

Key Dates to Remember

• 1 July 2026: Payday Super comes into effect.

• 30 June 2026: The current Small Business Superannuation Clearing House (SBSCH) closes - businesses will need to choose a new clearing house or super payment method.

What You Can Do Now

Even though the change isn’t until July 2026, now is the time to start preparing:

1. Review your pay cycle: Will weekly or fortnightly pay work best for your cash flow?

2. Check your payroll system: Make sure it can handle super payments each payday.

3. Plan for cash flow: Start building a buffer to cover super obligations.

4. Stay informed: More information is coming about qualifying earnings and other technical rules — keeping up to date will make implementation easier.

Payday Super is coming, but with a little planning, your business can transition smoothly. Start thinking about it now — don’t wait until the last minute!

5 Things to do before you hire a bookkeeper

Thinking about hiring a bookkeeper? Here are 5 simple things you can do first to make the process smoother, and potentially save yourself time and money!

1. Get your paperwork in one spot.

   Start gathering your receipts, invoices, bank statements, and any logins for the software you already use. The more organised you are upfront, the smoother the handover will be.

   
   

2. Know what you are behind on.

   Make a quick list of any outstanding tasks - like unpaid invoices, unreconciled accounts, or overdue BAS lodgements. This helps your bookkeeper see where to start.

   
   

3. Decide what you want help with.

   Do you just need your a one-off-tidy-up? Or are you looking for ongoing monthly support? Make a note of what is stressing you the most right now.

   
   

4. Check your business structure.

   Are you registered for GST? Do you need help with BAS?

   These details help your bookkeeper plan the right support for you.

   
   

5. Be honest about your budget.

   A good bookkeeper will always be upfront about pricing, so there are no surprises. At Brown and Co Bookkeeping, I offer clear, fixed package pricing, so you know exactly what’s included. At the end of each cycle, you’ll also get a breakdown showing how your time was used — so you can see the value for your business.

The more prepared you are, the easier it is for your bookkeeper to jump in and lighten your load - so you can get back to running your business (not your books!)

Ready to get started? Get in contact — I’d love to help you tick bookkeeping off your list.