Payday super begins July 1, 2026. If you employ staff, your cash flow obligations change from the first pay cycle. This post covers what that means for your working capital, what finance options can bridge the gap, and why the permanent instant asset write-off is still worth acting on this EOFY.
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Six days. That is how long small business owners have to get their cash flow ready for one of the biggest payroll changes in decades.
Payday super becomes law on July 1, 2026. From that date, super contributions must be paid at the same time as wages, not quarterly. For a tradie with eight employees paying fortnightly, that means super comes off every second Thursday. Not four times a year. Every fortnight.
The businesses that manage this well will be the ones who set up the right working capital facility before the first pay cycle hits. This post covers how to do that.
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Payday super means employers must pay their employees’ superannuation contributions at the same time wages are paid, not at the end of each quarter. The change takes effect on July 1, 2026, and applies to all employers, regardless of size.
Until now, employers could hold quarterly super payments and manage cash flow across those 90-day windows. From July 1, that window closes. Every payroll run triggers a super obligation. For many small businesses, this compresses what was one large outgoing per quarter into a series of smaller, more frequent ones. But the total annual impact on your cash reserve is significant.
One more change worth noting: the Small Business Superannuation Clearing House (SBSCH) closes on June 30, 2026. If you currently use the SBSCH to process super, you will need to move to a compliant payroll system or clearing house before July 1. Speak to your payroll provider now if you have not already.
For more detailed information on the Payday Super changes you can head to the ATOs Payday Super page, for a summary of what employers should do to meet their super guarantee obligations.
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According to Employment Hero research, the average employer will need more than $124,000 in additional working capital to manage the shift to payday super.
That number reflects the compounding effect of accelerated payment timing. Quarterly super created a natural float. Payday super removes it entirely.
To put it in plain terms: if you run a small building business with eight employees on $70,000 salaries each, your super bill at 12% runs to around $64,400 per year. Quarterly, you would have had a 90-day window to hold that cash. Weekly or fortnightly, you need it available from the first pay run in July.
If your cash is currently tied up in receivables, that is where the problem starts.
An important part of the process is to speak with your accountant to understand what the change means specifically for your business, including how your payroll cycle and margin structure will affect your individual working capital requirements.
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Both work. Which one fits your business depends on how your cash flow is structured.
A line of credit gives you a revolving facility you draw from when you need it and pay back as cash comes in. You only pay interest on what you use. It sits in the background, ready to cover obligations like super payments, without you having to apply fresh each time. It is a good fit if your cash flow is generally healthy but timing is the issue. Our Line of Credit page breaks down the key advantages and how this type of credit works.
Invoice funding (also called debtor finance) is structured around your outstanding invoices. If you have customers who pay on 30-60-90 day terms, invoice funding lets you access that money now rather than waiting for the payment. You get a portion of the invoice value upfront, then the balance when your customer pays. It is a strong fit for businesses where cash is locked in receivables, becauase your receivables ledger is essentially your security. Invoice funding lenders assess your debtor quality as much as your actual business financials. For more information on this, head to our Invoice funding page. For invoicing-heavy businesses,
Here is a practical example. A tradie with eight employees running fortnightly payroll suddenly needs an extra 12% of each payroll run available every two weeks. Their super obligation does not change in total, but the timing does. A line of credit, drawn against as needed and repaid when invoices clear, keeps the business moving without touching operating cash.
With access to 50-plus lenders on our panel and hundreds of loan options, our brokers can identify which structure gives you the most flexibility at the lowest cost for your specific situation.
You’ll also have your own dedicated lending specialist throughout the whole process, who will be able to take care of everything from start to finish. Making sure you can focus on your business while we find the finance solution that fits you and your business’s needs.
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Yes, but you need to move now. July 1 is six days away as this post is published, and approval timelines for business finance typically run between a few hours to a few days depending on documentation, lender, and the structure of the facility.
The goal is not to scramble the night before. It is to have your facility approved and available before your first July pay run triggers the new obligation.
What lenders look for: proof of ABN (generally 12 months minimum, but can be as little as 6 months), recent bank statements or BAS, business turnover, and a reasonable credit profile. For unsecured business loans and lines of credit, there are low-doc and lite-doc options that can work from bank statements alone, without full financial statements or tax returns. For some lenders in our panel, approval can happen within a few hours on straightforward files.
The point is: the right facility exists for your situation. The key is getting it in place before the payroll cycle forces a cash shortfall.
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The Federal Budget confirmed on May 12, 2026 that the $20,000 instant asset write-off for small businesses (turnover under $10 million) is now permanent from July 1, 2026. Previously it was legislated year by year, which created genuine end-of-financial-year pressure.
That pressure no longer exists in the same way. The write-off is available year-round from next financial year. But EOFY is still the natural trigger to act, because purchasing a qualifying asset before June 30 means you can claim the deduction in your 2025-26 return, not wait until 2026-27. If you were already thinking about a new vehicle, a piece of equipment, or a tool that your business needs, the tax outcome from acting this week versus next month is material.
Speak with your accountant to understand whether a purchase before June 30 affects your tax position and whether the asset qualifies for the write-off. This is general information only and does not constitute tax advice. If you want to get a better understanding of the qualifying criteria for the instant asset write-off, you can check off the ATO’s summary here.
For the finance side, equipment finance and unsecured business loans can often settle in a day if you already have found the equipment or have everything ready for your application. If the asset is approved by June 30, the purchase date and the finance can align for your accountant’s purposes.
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The timing is good for more than just the super transition.
The payday super change forces a cash flow review that most business owners put off. While you are doing that review, it is worth checking whether your existing finance facilities are still structured correctly. A line of credit established two or three years ago at a different interest rate may be costing you more than a replacement facility would today.
Business conditions have been tough through 2026. Fuel costs, inflation, and the rate environment have all put pressure on margins. If your current facilities were set up under different assumptions, they may not be giving your cash flow the flexibility it needs right now.
We talk to a lot of business owners who assumed their existing arrangements were fine, and then found that restructuring gave them more headroom, better terms, and in some cases meaningful savings on their monthly obligations.
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This post covers three distinct situations. Run through these quickly to find yours.
You are running a business with employees and payroll going monthly, fortnightly or weekly. Payday super is an immediate cash flow event for you. If your current cash reserves cannot absorb the change without cutting into operating capital, a line of credit or invoice funding is worth exploring now.
You are a sole trader or contractor with no employees. Payday super still applies to your own super contributions, but the cash flow impact is far smaller and the urgency level is lower. Despite this, cash-flow is still something that is key to a business, and having a reliable facility gives you confidence and the ability to capitalise on opportunities that require financial outlay.
You are a business owner looking at a new asset or piece of equipment. The instant asset write-off is now permanent, but claiming it in this tax year means settling before June 30. Equipment finance and unsecured business loans can move quickly If the asset decision is already made.
If any of these sound like your situation, get in touch. We work with businesses across all industries and have access to 50-plus lenders on our panel, including lenders with appetite for low-doc and lite-doc business finance.
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Ready to protect your cash flow before July 1?
The shift to payday super is six days away. If you want a line of credit, invoice funding, or any other business finance facility in place before your first July payroll run, time is of the essence.
There is no cost to speak with our team. We assess your situation, find the right structure, and present you with the best options that fit your business’s needs, so that you can make the final decision on the option you want to proceed with. All without impacting your credit score or committing you to anything.
To look at options for cash flow and lines of credit for your business, call our team on 1300 665 906, or start your application online by clicking here to use our quick and easy online form.
 Rowdie Lang |
Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true.
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Reviewed by: Nathan Drew ✅ Fact checked 📅 Last updated: Jun 25, 2026 |
It can provide cash flow to cover expenses, buy inventory, invest in marketing, hire staff, or manage debt, helping your business grow without tying up assets.
No. Unsecured business loans don’t require property or equipment as security, allowing faster access to funds while keeping your assets safe.
Key benefits include no collateral required, faster approval, flexible use of funds, and the potential to improve your business credit history with timely repayments.
Yes. Unsecured business loans can be used to refinance or consolidate existing debts, simplifying repayments and potentially reducing interest costs.
Funds are flexible and can be used for working capital, buying stock, marketing, hiring staff, purchasing equipment, refinancing, consolidating debts, or paying tax obligations.
