From 1 July 2026, super is paid every payday instead of quarterly. That removes a cash buffer most businesses rely on without realising it. Here are the funding solutions to bridge the gap - overdrafts, loans and lines of credit from $5K to $500K.
Check my eligibility → Call 02 8046 3933Consider a business with a $40,000 monthly payroll. Under the current quarterly system, super at 12% (the rate from 1 July 2026) equals $4,800 per month or $14,400 per quarter. That $14,400 builds up in the business account over 90 days before being paid to the ATO. On average, the business holds approximately $7,200 of that float at any given time.
From 1 July 2026, that $4,800 per month flows out in real time - $1,200 per week for weekly pay cycles. The business never holds a meaningful float again. The cash leaves at the same velocity as wages.
This is not a theoretical problem. The Superannuation Guarantee rate rises to 12% from 1 July 2026, coinciding exactly with the Payday Super start date. Employers face both a rate increase and an acceleration of payment timing simultaneously.
Most business owners do not consciously track the super float because it was never a line item in their cash flow forecast. It was simply money that happened to be in the account. When it disappears, the effect feels like a sudden cash shortage even though the total annual cost has not changed.
The Payment Times Reporting Regulator reported that the 95th percentile payment time from large businesses to small suppliers hit 64 days in the first half of 2025. If you are waiting 64 days to be paid by a big client, you will have paid super roughly 9 times in that window under the new rules - compared to zero times under the old quarterly system.
| Employees | Annual wages | Quarterly super | Average float lost | Annual impact |
|---|---|---|---|---|
| 5 | $300,000 | $9,000 | ~$4,500 | $4,500 permanently removed |
| 10 | $600,000 | $18,000 | ~$9,000 | $9,000 permanently removed |
| 20 | $1,200,000 | $36,000 | ~$18,000 | $18,000 permanently removed |
| 50 | $3,000,000 | $90,000 | ~$45,000 | $45,000 permanently removed |
The "average float lost" column represents the cash that was historically sitting in the business account at any given moment between quarterly super payments. Under Payday Super, this buffer drops to near zero permanently.
For a 20-employee business, that is $18,000 of working capital that simply ceases to exist. Not temporarily - permanently. Every week going forward, the cash leaves with wages instead of accumulating for a quarterly payment.
If your revenue is seasonal but your payroll is consistent, the impact is amplified. A landscaping business or tourism operator might run tight through winter. Under the old system, the quarterly super float provided a natural buffer during lean months. That buffer is now gone. Seasonal businesses should model their worst-case month, not their average.
A business overdraft is a revolving credit facility attached to your business bank account. You draw funds when you need them and repay as cash comes in. Interest is charged only on the amount drawn, not on the full facility limit.
This is the most cost-efficient tool for Payday Super specifically because the cash gap is recurring but variable. Some weeks your cash flow covers it easily. Other weeks - when debtors are slow or a big expense lands - you need the buffer. An overdraft costs nothing when unused apart from the small line fee.
A line of credit works similarly to an overdraft but is structured as a separate facility rather than being attached to your main transaction account. You draw from the line when needed and repay on your own schedule within the agreed terms.
A term loan provides a lump sum deposited into your business account. You repay in fixed weekly or monthly instalments over an agreed term. This is less flexible than a revolving facility but can be the right choice if you want to build a dedicated cash reserve.
OverdraftMe compares 50+ non-bank lenders and recommends the most cost-effective solution for your specific situation. Free broker service - we are paid by the lender, not you.
Get a free quote →| Your situation | Recommended solution | Typical facility size |
|---|---|---|
| 1-10 employees, consistent revenue, short debtor days | Business Overdraft $10K-$50K | 1-2 months of super |
| 10-20 employees, variable revenue, some ATO debt | Business Overdraft $25K-$100K | 2-3 months of super |
| 20-50 employees, long debtor days (30-60+) | Line of Credit $50K-$250K | 3 months of super + buffer |
| Seasonal business, need upfront cash reserve | Term Loan $20K-$150K | Build 3-6 month reserve |
| Large payroll, complex cash flow, multiple entities | Combined facility - talk to broker | Custom structure |
Some industries are hit harder by Payday Super due to their existing cash flow characteristics:
Here is what the process looks like:
Pre-approved and unused is a strategy. Panic-applying at 9pm on a Sunday night in July when super has already missed its 7-day window is not. Lenders tighten criteria during market stress. Apply now, hold the facility, draw only if needed. The line fee on an undrawn facility is roughly $15-$30 per week - that is your insurance premium against a cash flow crisis.
Under the current quarterly system, employers hold 3 months of super as working capital. From 1 July 2026, super is paid every pay cycle. A business with 10 employees on $60,000 average salary loses approximately $9,000 in float permanently. A 50-employee business loses over $45,000 in float. The exact amount depends on your payroll size and pay frequency.
A revolving business overdraft is the most cost-efficient tool because you only pay interest on what you draw. It matches the recurring but variable nature of Payday Super cash gaps. Lines of credit and term loans are alternatives depending on your situation - a broker can help you choose the right structure.
Yes. Non-bank lenders through the OverdraftMe panel typically approve in 1-4 hours. You need 6 months trading history, $6,000+ monthly revenue, and an Equifax score of 550+. No tax returns required under $150,000. Pre-approve now and draw only if needed - the line fee on an unused facility is minimal.
Compare 50+ lenders. Free broker service. Decision in hours, not weeks. Draw only if you need it.
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