Major super reform will remove the 'unofficial cash buffers' for Australian firms
The introduction of Payday Super will eliminate the "unofficial cash buffers" for many small businesses in Australia, underscoring the need for preparation ahead of the reform's implementation in July, according to experts.
James Beeson, CEO of working capital specialists Earlypay, said the Payday Super reform will introduce issues for operators' cash flow systems.
"Quarterly super has historically acted as an unofficial cash buffer for thousands of businesses as Super could be paid with up to a three-month delay," Beeson said.
"Moving to Payday Super removes that buffer overnight. If you run weekly or fortnightly payroll but get paid by customers on more than 30-day terms, you suddenly have a liquidity mismatch, which is a huge challenge for any business."
Christopher White, CEO of specialised business services company Pay Australia, added that the Payday Super reform will introduce "more frequent outflows" for employers.
"With the superannuation guarantee equating to 12% of ordinary time earnings, employers will feel faster, more frequent outflows, and a one-off working capital hit roughly equal to a quarter's contributions," White said in a statement.
Beeson said even businesses with strong accounting profitability will feel its impact.
"This will be the great cashflow compression of 2026," he said.
"Even for businesses with strong accounting profitability; if cash is arriving later but obligations are due sooner, the stress shows up fast."
Payday Super reform
Australia's Payday Super reform will mandate employers to pay employees' superannuation alongside wages, following data that showed millions of Australians are missing out on billions of super entitlements.
The change is set to take effect on July 1, with the Australian Taxation Office working closely with industry groups and digital service providers to help businesses prepare.
"The smartest move is getting specialist advice early — talk to your payroll provider, accountant or finance broker to model the cash impact," White said.
"With the right plan, SMEs can tighten debtor processes, line up funding if needed, and avoid last-minute disruption and penalties."
