Cash flow management may soon get tighter for some Australian businesses thanks to upcoming regulatory changes.
Starting 1 July, businesses in Australia will be required to pay superannuation fees every pay cycle, replacing the current quarterly payment system.
"This will absolutely have an impact on business operations and cash flow; to some a greater extent than others. But we definitely expect an increase in demand for cash flow solutions," Roberto Sanz, general manager of sales and partnerships at non-bank lender Prospa, told Australian Broker.
His firm, in collaboration with data analytics firm YouGov, recently released a new report — dubbed the Prospa SME Sentiment Report — which found that many firms lack adequate cash flow buffers amid persistent inflationary pressures, while others are simply unaware of the impending changes.
Sanz added that the regulatory shift could disproportionately hit small- and medium-sized enterprises (SMEs), many of which lack both the cash flow buffers and the operational infrastructure needed to absorb the change smoothly.
According to the report, approximately 30% of SMEs said they have one month or less of expenses in reserve, while 14% said they have no reserves. Meanwhile, approximately 19% of SMEs surveyed said they were unprepared for the upcoming changes.
Even more disconcerting, 30% of SMEs are completely unaware of the reforms, while 41% said they had a limited understanding of the changes and 11% said they don't understand the new laws at all.
Sole traders and businesses with staff with variable hours, commissions or heavy bonus structures are especially exposed, Sanz pointed out.
"Whenever there's volatility in the payroll, there will be a volatility as well of the superannuation," he explained. "Before, firms had three months to consolidate that payment. Now it's going to happen on a weekly basis."
The report highlights hospitality, professional services, and building and trade firms as particularly unprepared, with 53%, 75%, and 70%, respectively, admitting they’re not ready for the regulatory changes.
Still, despite tighter conditions, businesses still need to borrow to keep running. The report found that as of February, an increased number of SMEs plan to borrow funds in the next 12 months, 34%, compared with 31% in September 2025.
Both businesses and brokers can take steps to prepare for the upcoming changes. For businesses, Sanz recommended that firms consider both operational and liquidity risks, including the impacts of cash flow, available reserves and if they can actually process super payments more often.
"It's very different when you move from doing it four times a year [to every pay period]," he said. "The firm might be relying on manual processes at present, and now have to move to processing every week or every fortnight."
In terms of cash flow, the executive added, "more frequent outflow requires a review cash flow forecast. So moving from 50 to 26 [payments] to four, you need to constantly be forecasting what's going to be your cash flow position when payments need to come out. Also, how liquid is your company to afford these payments? And what are you going to do in the event that your cash flow cannot support your payments?"
For brokers, Sanz said the upcoming regulatory changes also present an opportunity for brokers to step into a more advisory role.
"This becomes a time and a trigger to support clients," he said, adding that brokers should "pressure test cash flow and to get the basics in place before July kicks off."
