(28 September 2026 – Australia) Almost three in four Australian small businesses are facing severe cash flow impacts from Payday Super changes.
The findings come as part of the latest ScotPac SME Growth Index release that reveals the new Payday Super regime is putting immediate pressure on cash flow, compounding ingrained working capital constraints.
The report, based on direct interviews with 727 SMEs conducted by East & Partners since 2014 (A$1 million to A$20 million annual revenue), found that three quarters of small businesses declared they were not fully prepared for the change or expected their cash flow to suffer (74 percent).
Payday Super came into effect on 1 July with over two thirds of SMEs reporting they were unprepared for the shift to paying superannuation at the same time as salary payments in terms of cash flow preparations and up to 78 percent of smaller sized SMEs yet to act immediately ahead of the change.
Julian Barnes reports for Broker Daily that smaller SMEs have reported the greatest exposure, with 83 percent of businesses with annual revenues between A$1 million and A$5 million predicting a negative impact on cash flow, compared with 64 percent of SMEs turning over between A$5 million and A$20 million.
“Brokers could help businesses quantify working capital shortfalls before they hit. Every pay run now has the potential to reduce funds available for suppliers, inventory, equipment and business investment” commented ScotPac CFO David Kirwan.
“SMEs should map the timing of customer receipts against wages, super and other major commitments. That helps identify pressure points early and distinguish a temporary timing mismatch from a more persistent trading issue.”
“Where a genuine timing gap exists, appropriately structured finance can help preserve liquidity and keep essential expenditure and investment on track. The right facility should match the business’s operating cycle and repayment capacity.”