Businesses Face Cash Flow Challenges Ahead of New Super
Rules
SYDNEY — Australian small and medium-sized enterprises (SMEs) are being urged to prepare for the impending Payday Super deadline on July 1. The changes, which require employers to pay superannuation contributions with wages, are set to impact cash flow and operational processes for many businesses, according to Earlypay, an invoice finance specialist.
The new regulation mandates that super contributions must be deposited into employee super funds within seven business days of payday. James Beeson, CEO of Earlypay, highlighted that many SMEs still view Payday Super as a compliance issue when it will significantly affect day-to-day operations. He noted that the removal of the quarterly super buffer could create a liquidity mismatch, particularly for businesses that operate on longer customer payment terms.
Economic Pressures and Industry Impact
Judy White, Executive Director at BDO, advised businesses to use the months leading up to the deadline to review and test their payroll systems. She emphasised the need for accurate employee super data and warned that errors could lead to penalties. The transition is expected to be most challenging for sectors with high payroll costs, such as construction and transport, where payroll cycles do not align with customer payment schedules.
These changes come at a time when SMEs are already facing economic difficulties, including rising fuel costs and increased borrowing rates. Beeson noted that these pressures, combined with the new super regulations, could result in cash flow challenges for many businesses. He suggested SMEs consider options like invoice finance to manage the transition effectively.
Last updated: 29 June 2026, 12:38 pm
