With just weeks until Payday Super comes into effect, NAB has warned businesses to prepare now to avoid unexpected pressure on cash flow as employers move to paying superannuation at the same time as wages.
The major bank said the change, which takes effect from 1 July, will require super to be paid alongside wages rather than quarterly, altering when money leaves a business, particularly for employers with weekly or fortnightly payrolls.
NAB executive, small business Olivia Brosca said Payday Super was not about paying more super but paying it sooner and timing mattered for how businesses managed their cashflow.
“This is a structural change to when payments are made, and, for some businesses, it will change the rhythm of money moving in and out,” Brosca said.
“The earlier businesses understand the impact and plan for it, the more comfortable they’ll feel when the changes come into effect.”
NAB’s warning comes as its own insights show cash flow remains the most common issue for small and medium-sized business owners, with 44 per cent citing it as their top concern.
The bank also expects a significant increase in the number of super payments processed once the changes take effect, reflecting the shift from quarterly to more frequent payment cycles.
According to Brosca, early and practical conversations can help businesses adjust with confidence rather than react under pressure once the new rules begin.
“Our bankers are working with business owners to understand how cash flows through their business and options that support any adjustments that might be needed,” she said.
“For some, that means forecasting cash flow more frequently or setting aside funds earlier so super payments don’t come as a shock.”
NAB said the impact may be greater in industries such as hospitality, manufacturing and transport, where wages make up a larger share of operating costs and payroll is more frequent.
The bank pointed to the experience of Werribee business owner Pino Burrone, who operates Salon Vogue Hair, as an example of the benefits of preparing early after learning about the changes in April.
“That was the first time I’d heard about the changes. We used to pay super monthly and wages weekly for our team,” Burrone said.
“We spoke with our bookkeeper, built a buffer and recently started paying super weekly alongside wages so we are prepared for when the changes officially start.”
