If cash has felt a bit tighter since Payday Super kicked in on the 1st of July, you're not imagining it. And you're not doing anything wrong.

What’s going on?

Super used to sit in your account for up to three months before it had to go anywhere. Now, it has to leave your account every single pay cycle, weekly, fortnightly, whatever yours is.

Nothing about what you owe has changed. Just the timing. And timing is the whole game when it comes to cash flow.

There's also a one-off pinch coming in September: the June quarter's super is still due under the old rules (by 28 July), while September's Payday Super contributions are due almost immediately after under the new rules. Some businesses will be finding two lots of super in a short window.  

What to do about it

1. Map the gap. Work out exactly how much cash needs to be available each pay cycle compared to your old quarterly rhythm.
2. Tighten up working capital. Try shortening how long it takes to get paid, issuing invoices sooner, tightening payment terms or even running leaner inventory where you can.
3. Have a source of finance ready before you need it. If the cash isn't quite lined up in a given week, a facility you can draw on and repay as invoices land is a much better position than scrambling for an overdraft or letting a payment slip. This is a timing gap, not a losses problem, and it's exactly what flexible finance is built to smooth over.

The bottom line

Payday Super has changed when money has to move, and that's squeezing a lot of trade businesses that were quietly relying on the old quarterly buffer without realising it. If super, wages, and a materials bill are all landing in the same few days and the cash isn't quite there yet, that's exactly the gap a Laddr line of credit is built for: draw what you need, repay when the invoice lands.

To see if you're eligible for a Laddr line of credit, visit laddr.com.au. Alternatively, jump on a call with our team: 1800 522 822.