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