Businesses will need to adapt their current cash-flow habits to make frequent superannuation payments to their employees under Payday Super.
The change means businesses need to pay superannuation at the same time as salary and wages. While this doesnโt increase the overall amount of super paid, it does mean businesses will pay smaller instalments more often. This presents an issue for small businesses already struggling with cash flow, as their super liability becomes a frequent upfront expense.
Payday Super Cash Flow Forecast Calculator
Our cash flow calculator for Payday Super helps small businesses estimate the working capital needed for the upcoming changes. To find out the funds you may need for each pay run under Payday Super, calculate the average total of your employees’ pay and enter your payroll pay frequency.
Please enter a valid salary and wages amount.
Results
Working capital needed per pay run
โ
super due every pay cycle from July 2026
Cash flow forecasting
Cash flow management will be a pain point for small businesses that rely on quarterly superannuation guarantee (SG) payments. When forecasting for Payday Super, businesses will need to account for:
- Qualifying earnings amounts: The amount used to calculate the SG.
- Pay frequency: Pay frequency will determine when you are obligated to pay the 12% SG on your employeesโ qualifying earnings.
- Superannuation Guarantee (SG): The mandatory 12% super guarantee on qualifying earnings. Some businesses elect to contribute more. You cannot contribute less.
These will help identify the additional working capital needed to meet Payday Super compliance requirements.
Why does cash flow matter for Payday Super?
Businesses, under the old convention, pay SG in four quarterly instalments throughout the financial year
These quarterly deadlines for super contributions mean that businesses have added time to either save or find funds to pay their super liabilities. This system allows businesses to build a habit of paying the liability later.
From 1 July 2026, the instalments are upfront and more frequent, meaning the liability, previously a โpay laterโ expense, becomes a โpay nowโ expense.
Cash Flow Forecasting for Small Businesses
To forecast your cash flow properly, it is important to remember that super contributions for your employees are already an expense you pay. Working capital used to fund this obligation is money you hold, not spend. Another way to think about your employees’ superannuation guarantee is much like your BAS and GST obligations.
When you pay and receive GST, you handle tax money for the ATO. Businesses avoid spending the GST they receive because it is money they donโt own. A common pitfall for businesses that fail to meet their GST obligations is spending the GST they receive.
Donโt get caught out: prepare with our Payday Super checklist.
