A recent survey shared by Xero reveals strong backing among Australian small business owners for the upcoming Payday Super changes, even as they grapple with significant obstacles to meeting new obligations. The shift to more regular superannuation contributions, slated to commence on July 1, has garnered approval from 91 percent of respondents, who view it favorably for their workforce.
However, concerns over cash flow management loom large, particularly due to persistent delays in customer remittances.
Conducted by One Picture on behalf of cloud accounting platform Xero, the poll involved 500 small enterprises that employ staff. Results indicate that 84 percent of owners fear that tardy payments from clients could lead them to breach the new super payment timelines.
On average, these businesses reported forfeiting approximately $15,257 in the previous fiscal year solely due to overdue invoices.
The move to Payday Super, which mandates super contributions aligned with payroll cycles rather than quarterly lumps, is anticipated to intensify financial strains.
Nearly nine in ten (87 percent) anticipate added pressure on their liquidity from the increased frequency of payments.
When asked about primary cash flow challenges, 58 percent pointed to unreliable customer receipts, while 57 percent highlighted escalating operational costs.
The repercussions extend beyond business ledgers.
Roughly one-third of respondents (31 percent) foresee tapping into personal funds to fulfill compliance requirements, with an equal proportion considering loans.
To cope, 41 percent plan to postpone settling business bills, and 38 percent may defer their own salaries.
Looking ahead, 82 percent expect to scale back or postpone expansion and investment initiatives throughout 2026 as they navigate these demands.
Despite the hurdles, optimism persists regarding adaptation. About 31 percent believe they can adjust operations within three months, while 62 percent anticipate full readiness by the six-month mark.
Angad Soin, Xero’s Managing Director for Australia and New Zealand and Global Chief Strategy Officer, emphasized the broader implications.
He noted that the potential need for owners to use personal savings underscores the necessity for enhanced cash flow oversight.
Soin advocated for leveraging modern digital solutions and automation to streamline processes, connect payroll with payments, and minimize manual tasks.
He specifically recommended implementing convenient online payment options on invoices—such as cards, digital wallets, or direct debits—which can accelerate receipts significantly and bolster liquidity.
As the July deadline approaches, the findings serve as a reminder for small operators to bolster their financial management systems. By adopting efficient tools, businesses can better position themselves for compliance while maintaining focus on growth and daily operations.