A business owner can have strong sales, reliable customers and plenty of work booked in, yet still feel short of cash every time payroll comes around.
That has become more important since Payday Super started on 1 July 2026.
Employers now pay super in connection with each payday instead of relying on the previous quarterly cycle. The Super Guarantee rate remains 12%, and contributions generally need to reach an employee’s super fund within seven business days of payday.
The issue is timing, not a new super expense
Payday Super has not suddenly created another 12% expense for businesses that were already meeting their super obligations.
The money was already payable. What has changed is when it needs to leave the business.
Under the previous quarterly system, super could accumulate during the quarter before the payment deadline. Now super is tied much more closely to payroll.
That matters when wages are paid today but customer invoices will not be paid for another 14, 30 or even 45 days.
What could the change look like in real numbers?
Consider a business with $650,000 a year in qualifying payroll and employees paid fortnightly.
Annual qualifying payroll: $650,000
Fortnightly payroll: approximately $25,000
Super at 12% per fortnight: approximately $3,000
Annual super: approximately $78,000
Super generated across a typical quarter: approximately $19,500
The annual super cost has not suddenly increased. The difference is that instead of allowing around $19,500 to accumulate across a quarter, approximately $3,000 is now associated with each fortnightly payroll.
For a well funded business, that may be easy to absorb. For a business already managing wages, fuel, materials, suppliers, tax obligations and slower paying customers, the change can make an existing working capital gap much easier to see.
A profitable business can still have a cash flow problem
Profitability and cash flow are not the same thing.
A business may invoice $150,000 this month but still be waiting for much of that money to reach its bank account. At the same time, wages, super, fuel, stock and suppliers still need to be paid.
That is why I would look at the full cash cycle.
When does the business pay wages? When does super leave? When are suppliers due? How much is sitting in unpaid invoices? How long do customers actually take to pay?
Those answers can reveal whether the business has a temporary timing issue, a recurring working capital requirement or a more fundamental cash flow problem.
Which businesses may notice the change most?
Businesses with significant payroll commitments and delayed customer payments are the obvious place to look.
Labour hire and recruitment businesses may pay employees weekly while clients pay invoices weeks later.
Transport operators can have wages, super, fuel, tyres and repairs continuing every week while invoices remain outstanding.
Construction and trade businesses may need to cover wages, super, materials and supplier costs before a progress payment or customer invoice is received.
Agricultural businesses can have regular operating costs even when income is seasonal or uneven.
The common issue is the gap between paying for the work and being paid for the work.
What finance options might be worth reviewing?
The answer should depend on what is causing the gap. A generic business loan is not automatically the right solution just because cash is tight.
Invoice or debtor finance
If a large amount of money is tied up in unpaid customer invoices, invoice or debtor finance may be worth reviewing.
This can provide access to funding linked to eligible receivables, which may suit a business that is performing well but has to wait for customers to pay.
Working capital finance
A working capital facility may suit a business with a genuine short term or recurring gap between expenses and receipts.
Overdraft or revolving facilities
Some businesses need access to funds that can move with the normal ups and downs of their cash cycle rather than one large lump sum.
Depending on the business and lender requirements, an overdraft or revolving facility may be another option to consider.
Equipment finance
Cash flow can also become tight because a business has used cash to purchase vehicles, machinery or equipment.
Where appropriate, equipment finance may allow a business to preserve more cash for wages, suppliers and day to day operations rather than using a large amount of working capital to acquire an asset.
Review the gap before it becomes urgent
By the time a business owner is worried about making the next payroll, the funding conversation is already more urgent.
A better time to review working capital is when the pressure is becoming visible. That might be after winning a large contract, employing more staff, taking on bigger projects, experiencing slower customer payments or seeing the effect of more frequent super payments.
The question is not simply, “How much can I borrow?”
It is, “Where is the cash tied up, how long is the gap and what type of finance matches it?”
If the business is trading well but wages, super and operating costs are leaving the account well before customer money arrives, Thrive Broking can review the position and look at finance structures that may suit the circumstances.
Frequently Asked Questions
1. Did Payday Super increase the Super Guarantee rate?
No. The Super Guarantee rate remains 12%. The major change from 1 July 2026 is the timing of contributions, which are now connected with each payday rather than the previous quarterly payment cycle.
2. How quickly does super need to reach an employee’s fund?
In most cases, the contribution needs to reach the employee’s super fund within seven business days of payday. Different timeframes can apply in some circumstances, so employers should confirm their obligations with the ATO, their accountant or payroll provider.
3. Can Payday Super create a working capital problem?
It can make an existing timing gap more noticeable. A business may be profitable but still have wages, super and suppliers leaving the account before customers pay their invoices.
4. Could invoice finance help if customers pay slowly?
Potentially. If the business has eligible invoices outstanding and the main issue is the delay between completing work and receiving payment, invoice or debtor finance may be worth reviewing. Suitability depends on the business, the debtor book and lender requirements.
5. Should a business borrow just to pay super?
Borrowing should not be treated as an automatic solution to a super obligation. The broader cash flow position needs to be understood first. If the issue is a genuine timing gap in an otherwise viable business, an appropriate working capital structure may be worth considering.
A Broker’s Observation
A useful question is not simply how much money is in the bank now, but how many days sit between paying for the work and being paid for the work.
Payday Super has shortened part of that cash cycle for employers. For businesses with larger payrolls, growing staff numbers or customers paying on terms, understanding working capital is even more important.
The aim is to identify the actual gap, understand why it exists and decide whether a finance structure can support the business without creating a bigger problem later.