Payday Super Is Coming — And If Your Cashflow Isn’t Under Control, This Will Hurt
Most business owners are already feeling the pinch. Costs are up, margins are tight, and cashflow feels harder than ever to manage.
And now the next major change is coming: Payday Super.
From 1 July, every employer in Australia will need to pay super at the same time they run payroll — not quarterly, not monthly… immediately.
On the surface, it sounds simple. But for most small businesses, it’s going to create one big problem:
If your cashflow isn’t strong, payday super will expose it. Fast.
And that’s why I’m seeing more clients fall into the cashflow trap — where the business looks profitable on paper, but the bank account keeps going backwards.
Why Payday Super Changes Everything
Right now, many businesses rely on the timing gap between pay cycles and super payments to smooth out cashflow.
That buffer disappears on 1 July.
What this means for you:
- You’ll need cash on hand every single pay cycle to cover wages and super.
- Miss a payment and penalties will be tougher because the ATO receives real-time reporting.
- Businesses with labour-heavy costs (construction, trades, hospitality, professional services) will feel it the most.
This isn’t fear-mongering — it’s preparation.
The Real Problem: Profit ≠ Cashflow
A surprising number of “profitable” businesses still run out of cash.
I’ve seen businesses doing $2–$5 million in revenue run into overdraft because:
- WIP isn’t managed
- Progress claims are too slow
- Job costs blow out
- Debtors stretch from 14 days to 45+
- Owners don’t know their weekly cash burn
- Margins are guessed, not measured
When payday super hits, these issues won’t stay hidden anymore.
Here’s What You Should Do Before 1 July
A few smart moves now will save you a world of pain later.
- Run a “Payday Super Cashflow Stress Test”
Check if your business can handle wages + super hitting the bank on the same day.
I run this test for clients and it’s eye-opening.
- Fix your payroll cycle
Weekly is about to become painful.
Many businesses will move to fortnightly or monthly to stabilise cash requirements.
- Tighten debtors (no more 30–45 day blowouts)
Every slow payer becomes your problem under payday super.
- Recalculate job margins with labour included at real-time cost
Especially for builders, trades and services.
- Set aside a weekly super provision
Even a separate bank account works.
- Get your bookkeeping up to date (no exceptions)
If you’re not working with real numbers, payday super will hit you twice as hard.
What Most Smart Owners Are Doing Right Now
They’re not waiting. They’re preparing.
They’re running projections, modelling cashflow, cleaning up payroll and tightening the ship.
Because the reality is simple:
Payday Super won’t cause cashflow problems — it will reveal them.
And the businesses that get ahead of this will be the ones who stay stable, profitable and in control.
If you want help running a payday super cashflow check or want to know what this means for your business, reach out. The earlier you get clarity, the easier this transition will be.
