Trade business owners are being urged to prepare for a significant shift in cash flow management, with payday super reforms set to change when superannuation contributions must be paid.

The West Australian has reported warnings from business groups that the federal government’s planned payday super changes could create a serious cash flow squeeze for small and medium businesses. Under the proposed reforms, employers would be required to pay superannuation at the same time as wages, rather than quarterly as is currently the case.

For trade businesses running tight margins, the change could mean substantially more cash needs to be on hand at each pay cycle. A business paying weekly wages would need to cover super contributions every week, rather than setting funds aside over a quarter.

Accountants and payroll advisers have recommended trade business owners review their cash reserves and credit arrangements well ahead of the reforms taking effect. The start date has been flagged as 1 July 2026, though implementation details are still being finalised.

Editor’s note: The 1 July 2026 start date is drawn from publicly available government announcements and should be verified against current Treasury or ATO guidance before relying on it for business planning.

Frequently asked questions

What is the payday super reform?

The federal government has proposed requiring employers to pay superannuation contributions at the same time as wages, rather than quarterly as is currently required.

When are payday super reforms expected to start?

The reforms have been flagged to take effect from 1 July 2026, though implementation details are still being finalised. Business owners should check current Treasury or ATO guidance for updates.

How could payday super affect trade businesses specifically?

Trade businesses that pay wages weekly would need to fund super contributions every pay cycle instead of quarterly, meaning more cash must be available on hand at any given time.

What should trade business owners do to prepare?

Accountants and payroll advisers recommend reviewing cash reserves and credit arrangements well ahead of any commencement date. The Australian Small Business and Family Enterprise Ombudsman may also be able to provide guidance.

Sourced from The West Australian. Original article.