Many SMEs not ready for Payday Super

As a result, one in five said they have delayed or reduced planned investments, leading to what SME fintech and lender Prospa highlighted as a growing impact on cash flow decisions.

The new research, released by both Prospa and YouGov, found that average cash reserves sit at approximately 2.6 months of expenses, and about one in seven SMEs have no reserves at all.

About 60 per cent of SMEs reported being confident they could remain cash flow positive over the next 12 months, down from 70 per cent in the February SME Sentiment Report.

In that pool, only 24 per cent feel very confident, down from 32 per cent.

Nearly half of SMEs have increased prices in the past three months to offset rising input costs and inflation. Sole traders in particular have felt the strain, with one in five reporting no cash reserves at all.

“SMEs are still moving forward, but they’re doing it will less certainty. That has improved, with the latest data showing 25 per cent now unaware and a further 11 per cent still not fully understanding the reform,” Beau Bertoli, Prospa co-founder and chief revenue officer, said.

The research also revealed that many SMEs are investing in new tools to manage the pressure, but those benefits are not felt evenly.

Sole traders are significantly less likely to use AI, highlighting a growing divide between more established and smaller businesses.

“For many SMEs, this period isn’t about bold expansion,” Bertoli said.

“It’s about staying liquid, compliant and flexible. The businesses that plan early, model their cash flow properly and get the right support will be in the strongest position heading into the new financial year.”