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The changes, due to come into effect from 1 July, are expected to reshape how many SMEs manage working capital and access credit, according to brokers working in business finance.
The reform, passed by Parliament in November 2025, will require employers to pay employees’ superannuation guarantee at the same time as wages, replacing the current quarterly payment framework.
Non-bank lender Banjo Loans said that while the change is unlikely to create major administrative challenges for most businesses, it will place greater focus on cash flow forecasting, working capital management, and debtor control.
The lender’s SME Compass Report found that while 65 per cent of SMEs said their day-to-day cash flow is stable and predictable, only 60 per cent are confident their cash flow will comfortably absorb more frequent Payday Super contributions.
“What we’re hearing from business owners is that the payroll side is manageable. The real focus is cash flow,” it said.
“Payday Super doesn’t change how much businesses pay in superannuation, but it does change the frequency of when money leaves the business.”
Awareness gaps also remain.
According to research from Prospa and YouGov, 25 per cent of SMEs remain unaware of the changes, while a further 11 per cent do not fully understand the reform. Nearly four in 10 businesses also reported they were not ready for the transition.
Keeping cash flow steady
While brokers said most clients are aware of the incoming changes, many are now assessing how they will manage more frequent cash outflows.
Melissa Ashcroft, director of AAA Financial Group, said to Broker Daily that industries with variable income streams, seasonal revenue, or high wage costs are likely to feel the impact most.
“The biggest challenge isn’t necessarily the additional cost, but the acceleration of cash flow requirements,” she said.
“Many SMEs have become accustomed to holding cash for longer periods before making super contributions, and the move to Payday Super reduces that flexibility.”
Nathan Murphy, director of BlueRock, said many self-employed business owners have built their working capital strategies around quarterly super obligations.
“That quarterly rhythm has almost become baked into how they think about their working capital,” he said to Broker Daily.
“Shifting to payday super effectively removes that float. Every pay run now carries a super liability on top of wages, and for a business that’s already navigating the ups and downs of sales, that’s a real structural shift in how cash moves through the business.”
Credit demands expected to shift
According to Murphy, the changes are already influencing conversations around business funding.
“The conversations I’m having most right now are around working capital facilities, specifically overdrafts and lines of credit,” Murphy said.
“For a lot of clients, this has been the trigger to put a proper facility in place that gives them comfort in advance of the changes.”
Murphy said revolving facilities remain the most practical solution for many businesses facing temporary cash flow gaps.
“A line of credit/overdraft is generally the most suitable solution. They’re drawing only what they need, repaying as cash comes in, and the cost is relatively low when managed well,” he said.
For businesses with available property security, Murphy said the major banks remain highly competitive.
“For clients with equity in their home or investment property, the major banks such as CBA, NAB and ANZ are well suited and are most competitive on rate, and the facility is genuinely flexible,” he said.
He said that unsecured facilities can still be an option for profitable businesses with strong trading performance.
However, businesses with more complex financial profiles may face greater hurdles accessing funding through traditional lenders.
“In those cases, the major banks can be quite slow or conservative in their credit appetite. That’s where I’d often look at a fintech solution like SHIFT or Banjo Loans – faster to assess, more willing to look at actual business cash flow rather than just financial statements, tax returns, creditors/debtors’ balances, and better suited to businesses that don’t fit neatly into a bank’s scorecard,” he said.
Ashcroft said many of her clients are also reviewing internal processes to improve liquidity.
“We’re seeing clients focus on improving cash flow forecasting, reviewing working capital facilities and ensuring they have sufficient liquidity buffers,” she said.
“Some are also revisiting debtor management processes to bring cash into the business more quickly.”
More than a transition
While Payday Super is often discussed as a compliance change, brokers believe the longer-term impact could be more significant.
“Honestly, I think it’s structural,” Murphy said.
“The adjustment period matters, but what I think this really does is accelerate a shift that was already underway, small-business owners becoming much more deliberate about their credit facilities, not just reactive.”
Murphy expects demand for revolving credit products to remain elevated well beyond the implementation date.
“Businesses that have never needed a formal working capital facility before are now realising they probably should have one in place as a buffer, even if they don’t draw on it regularly,” he said.
He also believes the reforms will further accelerate growth in the fintech lending sector.
“If a business owner needs a decision within a matter of days, or even one to two weeks because a payroll cycle is about to hit, they’re going to struggle to get that result with a major bank. That gap is where fintechs are increasingly winning business, and I think Payday Super will only sharpen that trend,” he said.
Matthew Chik, managing director of MC Finance Group, said the reform would create ongoing operational pressures for SMEs beyond cash flow management alone.
“It is likely to create a permanent increase in operating costs for SMEs through additional administration, compliance obligations, software expenses, and cash flow pressures,” he said.
“These higher overheads will inevitably affect business profitability and borrowing capacity. In many cases, the additional costs will ultimately be passed on to consumers through higher prices for goods and services.”
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