From 1 July 2026, employers will have to pay superannuation at the same time as wages. There will be no more quarterly superannuation payments and no more option to hold superannuation as a short-term cash buffer. For many businesses, this is not just a compliance change but a cash flow and profitability concern.

The real question is not simply whether you are ready for Pay Day Super. The better question is whether your cashflow and margins are strong enough to absorb it. With the new Pay Day Super cycle, cash flow tightens, compliance risk increases and there is far less room for error. If your business has relied on quarterly super timing to ease working capital pressure, that flexibility disappears, bringing pricing, margins and profitability into sharp focus.

Now is the time to ask when you last reviewed your pricing. Many businesses may not have adjusted their pricing in years, despite increases in wages, superannuation, insurance, rent, utilities, freight, software and compliance costs. In many cases, pricing has not kept pace. Even small increases can significantly improve cash flow, particularly once superannuation is being paid weekly or fortnightly. A modest adjustment across the right products or services can help offset rising wage costs, absorb the impact of Pay Day Super and restore margin that has quietly eroded over time. Small price increases can make a big cash flow difference.

For retail businesses in particular, this review is critical. Retail margins are often tight and highly sensitive to wage movements. With superannuation soon to be paid on every payroll run, the impact of staffing costs on daily cash flow becomes more immediate. Retailers should be reviewing gross profit margins by product line, monitoring shrinkage, assessing supplier pricing and analysing discounting practices. Ask yourself: are you pricing based on habit or on current cost structures? Are promotional discounts eroding more margin than they are generating in volume? Are freight and supplier increases being passed on, or absorbed?

Retailers should also examine stock turnover and buying patterns. Slow moving inventory ties up cash that will be needed more frequently once superannuation is paid with each pay cycle. Clear pricing strategies, disciplined discounting and careful stock management will play a major role in maintaining healthy cash flow under the new rules.

Across all industries, it is important to consider which clients or product lines are actually costing you money. Low margin jobs, high maintenance clients, scope creep and consistent late payers all erode profitability. Some revenue looks strong on paper but drains time, resources and margin in practice. Once superannuation becomes a real time obligation, those hidden losses become far more visible.

Although 1 July 2026 may seem some time away, preparation should begin now. Modelling the cash flow impact of paying superannuation on every pay cycle is essential. The change in timing alone can significantly alter your monthly cash position, particularly for businesses with larger wage bills or narrow margins. Forecasting the effect on working capital and stress testing quieter trading periods will provide clarity and confidence. At the same time, a structured pricing review, improved internal systems and confirmation that your payroll software is ready for the new requirements will reduce risk and pressure as the date approaches.

Pay Day Super is not just a payroll change. It is a profitability test and an opportunity. While the reform increases compliance pressure, it also provides a timely reason to reset pricing, strengthen margins, improve systems and build long term financial resilience. The businesses that will thrive post June 2026 will be those with disciplined cash flow management, clear visibility over costs and the confidence to review and adjust pricing when needed.

PT Ignite works with business owners to provide forward looking cash flow projections that clearly demonstrate the impact Pay Day Super will have on your business. We can model different pay cycles, test pricing adjustments, analyse gross profit margins, identify margin pressure points and forecast how your working capital will change once superannuation is paid with every payroll run. This allows you to make informed decisions now rather than reacting under pressure come 1 July 2026.

If you want clarity on how Pay Day Super will affect your cash flow, pricing and profitability, now is the time to act. Contact our team to arrange a cash flow projection so you can move into 1 July 2026 with confidence, not concern.