Is your cash flow ready for Payday Super?
From 1 July 2026, super will need to be paid with each pay run instead of following more commonly used quarterly cycle. For some businesses, that will be manageable. For others, it will put more pressure on cash flow. ScotPac’s latest SME Growth Index research shows almost 70% of SMEs have not yet made cash flow preparations for the change.
How Payday Super may affect cash flow
With the introduction of Payday Super, cash flow forecasting becomes even more important. You need to understand what super will be leaving the business each pay run, how it will be funded, and what it could cost if a payment is late.
The table below shows illustrative examples of what Payday Super may mean for businesses of different sizes.
Assumptions used: Average salary $75,000, Super Guarantee rate 12%, wages paid fortnightly. Penalty is calculated based on the outstanding amount and assumes super is paid late for all employees.
Super that now needs to leave the business each pay run
$3,462
$10,385
$34,615
This is the super that now needs to be funded every fortnight. If your customers are slow to pay, this is potentially a cash flow gap.
Super needs to be received in the employee’s super account
Within 7 days
within 7 days
Within 7 days
Super will need to reach the employee’s fund within 7 business days of payday. If it is late,
Super Guarantee Charge (SGC)
can apply, along with penalties.
If a super payment is late – 25% penalty
$865
$2,596
$8,654
Even one missed payment can add cost on top of the unpaid super.
If late payments happen again – a 50% penalty applies
$1,731
$5,192
$17,308
Repeat lateness gets expensive fast.
The Solution: Working Capital Finance
Fast access to working capital
ScotPac offers fast access to working capital for eligible businesses - with some solutions funded within 24 hours of approval.More than one way to fund it
ScotPac offers more than one way to fund working capital, including solutions backed by receivables, equipment and other business assets.Funding limits fitting your needs
Some businesses may only need a smaller buffer. Others may need more. ScotPac offers from $10,000 to $500,000 - and beyond for eligible businesses.Award winning Business Finance
As Australia’s largest non-bank lender, ScotPac combines the speed and flexibility of a specialist lender with the depth and reliability of a major finance provider – trusted by over 9,300 businesses nationwide.
Frequently Asked Questions
What is Payday Super and when does it start?
Payday Super is a regulatory change requiring Australian employers to pay superannuation contributions at the same time as wages – not quarterly, which is the most common frequency. It takes effect from 1 July 2026.
How will Payday Super affect my cash flow?
Instead of holding super contributions for up to three months, you’ll need to transfer them with every pay cycle. For many SMEs, this increases the frequency of cash outflows and creates a timing gap between receivables and payroll obligations.
What happens if I can't cover Payday Super payments on time?
Failure to pay super on time may expose your business to ATO penalties including the Superannuation Guarantee Charge (SGC), interest charges and additional admin fees.
What is the 7-day rule under Payday Super?
Under the new Payday Super rules, super contributions must reach your employee’s fund within seven business days of their payday – not just be processed or scheduled. This is a tighter requirement than most businesses are used to. If your cash flow is tight on payroll day, you risk missing the window and triggering ATO penalties even if you intended to pay. A working capital facility means the funds are ready before payroll runs, not scrambled for after.
What is the impact of the ATO Small Business Super Clearing House closing?
With the free clearing house permanently closed, employers will need a commercial payroll and super clearing solution. The subscription, implementation and integration costs may require additional working capital funding.
Can I use ScotPac funding to upgrade my payroll and super systems?
Yes. ScotPac can structure a financial solution to cover one-off investment in a new payroll and super platform – from buying the software to getting your team trained up.
Can ScotPac work alongside my existing bank?
In most cases, yes. Our facilities are often secured against receivables or business assets, making them complementary to traditional term loans or overdrafts. Call us and we’ll work through the numbers with you.
What types of businesses does ScotPac help?
ScotPac specialises in SMEs across a range of industries, with a strong focus on businesses that buy, hold and move physical goods – wholesalers, importers, manufacturers and food producers. Suitable for businesses with annual revenues from approximately $120,000 upwards, depending on your business.
How quickly can I access working capital?
Once approved and set up, you can often access funds within as little as 24 hours. Specific timeframes depend on your business circumstances and the solution selected.
Do I need property as security?
Many of our working capital solutions are secured against business assets such as unpaid invoices or equipment – meaning you may not need to use your home as security.