Small business owners are heading into a tricky few months, with new super rules and end-of-financial-year spending decisions set to put pressure on cashflow according to new research from Prospa.

The research from Prospa and YouGov suggests many businesses aren’t fully prepared for upcoming payday super changes, while others are holding back on EOFY investments to keep cash in the bank.

While 70 per cent of small businesses say they’re confident about staying cashflow positive over the next year, plenty are running with thin buffers. This could lead to problems when super payments move to every pay cycle from July.

Payday super could squeeze cash flow

From 1 July 2026, employers will need to pay super at the same time as wages, instead of quarterly. It’s a change business owners suggest could significantly affect cash flow. And it’s a change many businesses won’t see coming.

The research found 41 per cent of businesses don’t fully understand the changes, with 30 per cent unaware of them entirely and 11 per cent unsure how they work.

Preparedness is also patchy, with 19 per cent saying they’re not ready and another 14 per cent unsure if they can meet the new payment schedule.

Beau Bertoli, co-founder and chief revenue officer at Prospa, said the biggest risk is being caught off guard.

“The compliance changes to payday super will have a massive impact on SMEs’ cashflow. For businesses with thin buffers, moving super payments forward compresses working capital. The risk isn’t the rule itself; it’s being caught unprepared and being non-compliant.”

Cash flow pressures will mount

The report found many businesses don’t have much cash set aside to handle changes.

According to the research less than half (42 per cent) have two months of expenses or less in reserve. 16 per cent have less than one month, while 14 per cent admit to having no reserves at all. On average, small businesses hold about 2.7 months’ worth of expenses, not a huge margin if cash flow takes a hit.

Bertoli said planning ahead will be critical.

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

EOFY spending on hold

The upcoming deadline for the $20,000 instant asset write-off is adding another layer of decision-making for business owners. Despite the potential tax benefits, only 18 per cent of businesses plan to buy eligible assets before 30 June. Nearly a third are unsure what they’ll do, and some mistakenly believe the scheme has already ended.

Bertoli said many businesses are weighing up whether to invest or hold onto cash ahead of the super changes.

“What we’re seeing is hesitation, not apathy. 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.”

Turning to finance for breathing room

With cash flow under pressure, more businesses are considering external finance to help smooth things out.

The research found 34 per cent of businesses expect to seek funding in the next 12 months, up from 31 per cent last year. Those planning to borrow expect to access about $23,000 on average.

Bertoli said for many businesses, the focus this year is survival rather than expansion.

“For many SMEs, this year isn’t about bold expansion – it’s about staying liquid, compliant and flexible. 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.”

With payday super set to kick in from July, business owners may need to rethink how they manage cashflow, especially if they’re used to the quarterly super buffer.

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