From 1 July 2026, Payday Super will significantly reshape how small and medium-sized (SME) businesses manage cashflow, with the shift expected to remove a longstanding liquidity buffer many SMEs have relied on, says Moneytech.

Under the legislated reforms, employers will be required to pay superannuation contributions at the same time as wages, rather than at a different time, some making payments quarterly. The change is designed to ensure workers receive their super sooner and close the $5.2 billion annual gap in unpaid super across the economy.

Nick McGrath, CEO of Moneytech, said the change represents more than just a payroll compliance adjustment.

“For many SMEs, the timing gap between payroll and quarterly super contributions has effectively acted as a short-term cashflow buffer,” Mr McGrath said.

“Moving to Payday Super compresses that cycle. It means super leaves the business at the same time as wages, rather than being paid at the end of the quarter.”

SMEs underprepared

The scale of the shift is significant. At 30 June 2025, there were almost one million employing businesses in Australia – 97 per cent classified as small businesses. The Australian Chamber of Commerce and Industry (ACCI) has warned that over 40% of small businesses are not yet aware of the forthcoming changes to their superannuation requirements. Independent research from Employment Hero reinforces the concern, finding that 58 per cent of business owners had not yet heard of the reforms, despite them taking effect on 1 July 2026.

Chris White, CEO of Pay Australia, a specialist payroll and business services company that helps SMEs manage their payroll obligations, said the financial impact of the change will be felt immediately by businesses that are unprepared.

“Payday Super is more than a compliance adjustment, it removes the quarterly cash float many SMEs have quietly relied on,” he said.

“Employers should expect faster, more frequent outflows and a one-off working-capital hit roughly equal to one quarter’s contributions. The smartest move is getting specialist advice early –talk to your payroll provider, accountant or finance broker to model the impact and line up funding if needed.”

Additional payment events

Mr McGrath says the practical cashflow impact will depend on pay cycle frequency, but the numbers are significant regardless of how businesses pay their staff.

“A business running weekly payroll will go from making four super payments a year to up to 52 – that’s up to 48 additional payment events,” he said.

“For sectors such as construction, hospitality and transport, where labour costs dominate and cashflow is already tight, this isn’t just an administrative change. It’s a structural shift in how cash leaves the business.”

Mr McGrath says the businesses that come through this well won’t be the ones that wait until June to act – they’ll be the ones that model the cashflow impact now, line up funding if they need it, and make sure their systems are ready.

“For brokers, accountants and advisers, this is one of the most important conversations they can be having with clients right now,” he said.

Moneytech recommends SMEs begin modelling the cashflow impact of Payday Super now, ahead of the 1 July 2026 commencement. Businesses should review debtor processes, assess working capital requirements and engage their payroll provider, accountant or finance broker to ensure systems and funding are in place well before the deadline.