We’re on the brink of some significant shifts that could catch many business owners off guard if not prepared. Let’s break down what’s coming, how it may impact your cash flow, and most importantly, how you can stay ahead of the curve.
What’s Changing for Small Businesses
There are four major updates rolling out over the next 18 months to two years:
- Super Guarantee (SG) Increase to 12% – from 1 July 2025
The SG rate is rising again — this time from 11.5% to 12%. While this might seem like a small jump, when you’re running weekly or fortnightly payrolls, that increase stacks up quickly. - ATO Interest No Longer Tax Deductible – from 1 July 2025
This one will sting: businesses will no longer be able to claim tax deductions for General Interest Charges (GIC) or Shortfall Interest Charges (SIC). In short, if you’re late paying tax, it’s going to cost you more. - Payday Super is Coming – from 1 July 2026
This is a major shift. Employers will need to pay super at the same time as wages, instead of quarterly. It’s great for employee entitlements, but for employers, it means tighter cash flow planning and possibly updating your payroll software or service provider. - Closure of the Small Business Super Clearing House (SBSCH) – from 1 July 2026
The free, government-run SBSCH will be shut down, meaning small businesses will need to find another way to make super contributions. For many, this means researching new clearing houses or possibly paying fees to private platforms.
What This Means for Your Business
In practice, these changes — particularly payday super and the SG increase — will put more strain on your working capital. For some businesses, that could mean the difference between comfortably meeting payroll and scrambling to cover shortfalls.
The removal of tax deductibility on ATO interest also raises the stakes. A few days late on your BAS or income tax, and the cost to your business could rise sharply. We’ve always advised clients to keep on top of tax due dates, but now it’s even more important.
How to Prepare: Proactive Steps You Can Take
Here’s what we’re recommending to our clients:
- Review Payroll Systems Now: Your software should be ready for payday super. Not all systems are equipped for this, so now’s the time to review and upgrade if needed.
- Budget for Higher Payroll Outgoings: That extra 0.5% super adds up — factor it into your forecasts now so you’re not caught out later.
- Plan Cash Flow More Frequently: Move from quarterly to monthly (or even fortnightly) cash flow tracking. With super going out more regularly, you’ll need to keep a closer eye on available funds.
Why This Matters More Than Ever
Small businesses are resilient — but staying compliant and financially healthy in this evolving environment takes planning and the right support. These changes aren’t just red tape; they directly impact how you pay your people, meet your obligations, and stay out of trouble with the ATO.
We specialise in this space. Our firm works with small and medium businesses every day, and we know how to make these transitions smooth, strategic, and stress-free.
Need Help Getting Ready?
If you’re unsure how these changes will affect your business, or if you want to stress-test your payroll and cash flow processes — reach out. We offer tailored reviews and planning sessions so you can move forward with clarity and confidence.