Australian businesses are urged to start preparing now for a proposed major change to superannuation payments which could create unexpected financial pressure.

If the law passes, from July 1, 2026, employers will be required to pay their employees’ superannuation at the same time as their salary and wages — a shift under the Federal Government’s new Payday Superannuation proposed reform.

While designed to protect workers, the change could challenge the cash flow of thousands of small and medium-sized enterprises (SMEs) across the country.

Protecting workers, but squeezing businesses

The proposed reform, announced by the Australian Government, represents a significant shift in how employers manage superannuation.

Currently, most businesses pay super quarterly. Moving to a payday model means every time wages are processed — whether weekly, fortnightly or monthly — super must be paid too.

The new legislation, when passed, will require employers to ensure super contributions are received by the employee’s fund within seven business days of payday, or they will be liable for the superannuation guarantee charge.

While the reform enhances transparency and boosts retirement savings for employees, it also tightens the financial window for employers.

Many SMEs rely on the gap between paying wages and quarterly super contributions to manage their working capital. Losing that buffer could stretch liquidity and increase financial stress, particularly for businesses with tight margins or irregular income.

Navigating the new cash flow landscape

For many small businesses, the change will require a rethink of cash flow management. The move to Payday Superannuation will compress working capital cycles, reducing flexibility to cover everyday expenses and react to changes in revenue.

As a result, the demand for short-term liquidity and working capital solutions is expected to rise, particularly during the transition period as SMEs adjust to the new super contribution payment cycles.

Businesses can bridge the gap with fast, flexible funding options that give SMEs the breathing room they need to manage cash flow and stay ahead of their obligations.

Planning ahead for the change

With the new rules expected to take effect next year, businesses should act now to prepare. Reviewing payroll systems, forecasting cash flow needs, and setting up contingency plans for more frequent super payments will be key.

For many SMEs, access to reliable funding will make all the difference. Fast, flexible business loans and lines of credit, available via lenders including banks and non-banks, are designed to keep your business moving, even when cash flow gets tight.

Having a line of credit in place provides peace of mind, ensuring you can draw down funds when you need to meet payroll or super obligations without disrupting operations.

Helping businesses stay ahead of the curve

At Bizcap, we understand that regulatory change can bring both challenges and opportunities. Our mission is to help Australian SMEs stay compliant, confident, and cash-flow strong as they navigate the new Payday Superannuation landscape.

With access to up to $7.5 million in funding, approvals in as little as three hours, and same-day payments, Bizcap makes it easier for your business to move forward with confidence.

Apply today and discover how Bizcap can power your next stage of business growth.

Disclaimer: This information is general in nature and does not constitute legal, tax, or financial advice. While we’ve taken care to ensure the accuracy of this content at the time of publication, rules and regulations may change. For advice specific to your business or circumstances, please consult a registered tax agent, accountant, or the Australian Taxation Office (ATO).