Prospa flags Payday Super, cash flow as major SME challenges

Of those aware of the change, financial pressures were a major concern, as 19 per cent said they were not prepared, and 14 per cent were unsure if they could meet the new payment schedule.

“For businesses with thin buffers, moving super payments forward compresses working capital. The risk is the rule itself; it’s being caught unprepared and being non-compliant”, according to Prospa’s co-founder and chief revenue officer, Beau Bertoli.

Overall, SMEs operate with an average of 2.7 months of expenses, already leaving little room for error before increased financial obligations are considered. And many operate on much smaller cash reserves – 42 per cent had two months or less expenses in reserve, 16 per cent had one month or less, and a shocking 14 per cent had no reserve. 

Bertoli added, “Cashflow planning is going to be key for businesses. If you don’t have or can’t create the reserves to find this new change it’s time to plan a funding line to support your cashflow through this change.”

Founder of JD Scott + Co, James Scott, said that this time was “a call to action” for accountants to begin proactive communication campaigns with clients early and make sure they understand their obligations.

He also encouraged exploring payroll software options and integrating appropriate workflow tools as soon as possible. For clients with constrained or lumpy cash flow, the earlier those conversations occur, the better.

“Talk through working capital strategies and where short-term financial might help ahead of 1 July 2026," he said.

“Finally, make sure your own house is in order. You should already have the right payday super processes in place, or planned, so you can confidently guide your clients through the transition.”

EOFY investment decisions, meanwhile, had slowed down. Despite the instant asset write-off of up to $20,000 remaining available until 30 June 2026, only 18 per cent of SMEs planned to use it. In addition, almost a third were unsure, and nearly 5 per cent believed the scheme has already ended, according to the survey.

“Businesses aren’t saying no to investment - they’re stuck deciding when and in what order. When cash is tight and obligations are moving faster, sequencing matters," Bertoli said.

Concerningly but not surprisingly, external funding was being increasingly relied on to manage overlapping financial pressures, with 34 per cent of SMEs expected to access external finance over the next year, up 3 per cent from September 2025.

The expected average amount to be borrowed is $23,181.

“The businesses that plan early, model their cashflow properly and get advice will be in the strongest position to invest when the timing is right," Bertoli said.