Cash Flow Planning for Payday Super: How To Avoid Surprises

With the introduction of Payday Super, employers will soon need to pay employees’ superannuation at the same time as their wages – rather than quarterly. While this change improves transparency and protects employees, it also creates a new set of challenges for business cash flow planning and management.

For many organisations, the shift from four super payments a year to ongoing, frequent outflows requires a complete rethink of how cash is forecast, managed and allocated. Proactive cash flow planning for Payday Super will be essential to avoid nasty surprises.

If you are still getting up to speed on what Payday Super is and when it starts, read our guide What Is Payday Super And What Do Employers Need To Think About Now? first, then come back to this article for a deeper dive into the cash flow impact.

We will also be running a webinar: Payday Super Changes: What Employers Need to Know Before July 2026 on Thursday 29 January at 1.00pm (AEST). Register now to secure your spot.

This guide explains how Payday Super affects cash flow, the key risks to watch and practical steps you can take now to protect your working capital.

Here’s how to get ahead of the change.

From Quarterly to Continuous: How Payday Super Changes Your Cash Flow Picture

Under the current system, employers often treat superannuation as a large but infrequent payment – paid up to 28 days after the end of each quarter. Many employers accrue super amounts in their accounts and pay them in a single lump sum after quarter end. In effect, super has acted as a short term source of funding inside the business.

Payday Super changes this dramatically:

Quarterly payments → Weekly/fortnightly/monthly outflows
28-day buffer → Payment due on or close to payday
Batch processing → Real-time payroll integration

For businesses with tight or seasonal cashflow, this shift reduces flexibility and increases the need for accurate cash flow planning and forecasting. Without proper planning, you may find yourself short of cash at critical times, such as BAS lodgements, rent, loan repayments or payroll.

Step 1: Model the Impact: What Different Pay Cycles Look Like

The foundation of effective cash flow planning for Payday Super is understanding what super outflows will look like under your current payroll schedule. Here are simplified illustrations.

Weekly Payroll Example

Weekly wages: $50,000
Super guarantee (12%): $6,000
New super outflow: $6,000 every week

Annual impact:

Old system: Four payments of ~$78,000
New system: 52 payments of $6,000
Cash leaves the business 8–10 weeks earlier than it currently does.

Fortnightly Payroll Example

Fortnightly wages: $100,000
SG: $12,000
Outflow every second week: $12,000

Annual impact:

Old system: 4 large payments ~ $78,000
New system: 26 smaller payments of $12,000
Cashflow timing tightens significantly.

Monthly Payroll Example

Monthly wages: $200,000
SG: $24,000
Outflow: $24,000 monthly, similar timing but earlier compared to quarterly payments.

Annual impact:

Old system: Four quarterly payments of approximately $78,000
New system: Twelve monthly payments of $24,000

The total super paid over the year is unchanged, but cash leaves the business earlier and more frequently than under quarterly payments, which needs to be factored into cash flow planning.

Step 2: Explore Cash Smoothing Strategies to Reduce Pressure

To avoid sudden strain on liquidity, businesses should consider implementing cash flow smoothing methods such as:

✔ Establishing a dedicated superannuation holding account

Move SG amounts into this account each pay run. This stabilises cash flow and avoids the risk of underfunding when payments fall due.

✔ Increasing payroll frequency reserves

Maintain a reserve fund that covers one to two full pay cycles, including wages and super.

✔ Aligning invoice cycles with payroll cycles

Where possible, bring forward billing or shorten payment terms so cash inflows better match your payroll schedule.

✔ Introducing rolling cashflow forecasts

Shift from quarterly or high-level monthly forecasting to weekly cash flow projections so you can see pressure points early and act in time.

✔ Automating payroll and super payments

Automation reduces delays, errors, and compliance risk, keeping cashflow predictable.

Read our blog on: Payroll Compliance Under Payday Super: 10 Things Employers Can’t Ignore for a more in-depth look at the key ATO obligations, common risk areas and how to tighten your payroll controls.

Step 3: Review Payroll Frequency and Timing

Some employers may find that their current pay cycle becomes inefficient under Payday Super. You might consider a change if:

You pay weekly and cashflow becomes too tight: Switching to fortnightly or monthly can reduce administrative load and smooth cash obligations.

Your payroll system struggles with high frequency super processing: A longer cycle (for example, fortnightly instead of weekly) can reduce pressure on systems and teams.

Your revenue cycle does not align with payroll: If major inflows occur monthly, matching payroll frequency may stabilise your cash pattern.

Your industry has seasonal or fluctuating workforce levels: Flexible pay cycles can help stabilise outflows during peak staff periods.

Before changing pay cycles, consider:

employee agreements
award obligations
HR and operational impacts
payroll system capabilities

Read our in-depth blog: Payday Super and Payroll Frequency: Should You Move To Monthly Pay? for a deeper look at the pros and cons of moving to monthly payroll.

Bringing It All Together: Cash Flow Planning for Payday Super

Payday Super represents a major structural shift for business cash flow. Preparing early – by modelling payroll scenarios, adjusting forecasts and evaluating process changes – can prevent unnecessary surprises.

With the right strategies and genuine cash flow planning for Payday Super, you can integrate the new rules smoothly and without disruption.