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Payday Super: What Could it Mean for Your Small Business?

Written by webadmin on . Posted in Uncategorised.

Payday Super Is Coming — Are You Ready?”

Back in 2023, the Australian Government announced a major change to how superannuation must be paid. From 1 July 2026, employers will be required to pay their employees’ super at the same time as salary and wages.

Under this new ‘Payday super’ model, super contributions will no longer follow the quarterly cycle. Instead, employers must ensure super is paid within seven business days of each pay cycle — whether weekly, fortnightly, or monthly.

But why the change? And what are the potential effects of moving to Payday Super?

Impact of Payday Super for your employees

This change will make it easier for employees to keep track of their Super and will boost their overall super fund at retirement. It will also remove the problem of casual workers habitually missing out on quarterly super payments under the current system.

By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 in today’s dollars or 1.5 per cent better off at retirement.

Impact of Payday Super for your business

Moving to a super system where employer contributions are made in line with the employee’s regular payment cycle may not seem like a huge shift. But moving away from the quarterly system could significantly affect your administration time and cash flow.

Let’s look at the potential downsides of Payday Super for your business:

Increased administrative burden

Paying superannuation with each pay cycle, rather than quarterly, will increase the frequency of your super payments. The added frequency of super payments will add to your administrative and payroll workload, stretching the already limited resources of your small business.

Unrealistic seven-business-day super payment timeframe

Small business groups are concerned about the seven-business-day timeframe for super contributions to reach employees’ funds. Many feel that administrative pressures, as well as banking and clearing-house delays, may make this target unrealistic.

Potential for late-payment penalties

The new legislation updates the Superannuation Guarantee Charge (SGC) rules. Employers may incur SGC liabilities and penalties if payments are late, even when delays stem from external clearing-house or fund processing issues.

Retirement of the Small Business Superannuation Clearing House

The Small Business Superannuation Clearing House has closed to new users from 1 October 2025 and will be fully retired from 1 July 2026. This free online service is widely used by small employers, and its retirement raises concerns around the availability of cost-effective alternatives for managing super obligations.

Let’s look at the potential upsides of Payday Super for your business:

Despite the challenges, Payday Super can also offer several advantages:

Smaller, more manageable payments

Rather than accumulating large quarterly super amounts, contributions will be smaller and more predictable, making cash-flow management easier for many employers.

Lower risk of Superannuation debt

By paying more frequently, businesses reduce the likelihood of significant super liabilities building up.

Improved payroll accuracy

Because super is calculated alongside wages each cycle, the risk of missed employees, incorrect calculations, or late payments naturally decreases.

Stronger employee trust and retention

Payday Super can become a selling point. Employees appreciate transparency and timely super payments — an easy win for employers competing for talent.

Preparing for Payday Super

With the legislation now passed and ATO guidance released, employers should begin preparation ahead of the 1 July 2026 commencement date.

Here are steps to consider:

  • Review and update your payroll system to process contributions every payday.
  • Confirm software integrates with updated SuperStream and Single Touch Payroll (STP) requirements.
  • Update employment contracts and onboarding processes to reflect new definitions and obligations.
  • Communicate with your employees so they understand the transition and know their super will be paid within seven business days of each payday.
  • Evaluate your cash-flow processes for more frequent super outflows.

If you’re concerned about the impact of more frequent super payments on your cash flow, we encourage you to book a meeting with us at Zweck to discuss cash-flow strategies and support.

Two important technical changes to prepare for:

  • Employers will calculate super using Qualifying Earnings (QE), a new measure that includes salary, overtime, bonuses and most standard pay items.
  • The Super Guarantee rate remains 12% — the reform changes timing, not the contribution percentage.

Talk to us about getting your payroll system ready for Payday Super

At Zweck we’re ready to support you through this transition. If your payroll processes or software systems are not yet aligned with payday super requirements, now’s the ideal time to speak with our team and update your payroll procedures.

How to use forecasts and scenario planning

Written by webadmin on . Posted in Uncategorised.

For centuries, accounting was all about reviewing historic information – but that only told you about the past, not what was going to happen in the future.

If you’re only looking back at past periods and historic numbers, this limits the insights you can achieve for your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of the business going forward.

Forecasting changes this. With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future – and get in control of your business.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management. By moving to a forward-looking view of your business journey, you can see further down the road – and that helps to spot any opportunities and avoid common business pitfalls.

Forecasting adds value by:

  • Highlighting the data patterns – a forecasting tool takes your historic data and projects it forward in time. This helps you and your advisers spot patterns, trends, gaps and opportunities, revealing the true ‘story’ behind your business accounts. For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise negative impacts.
  • Giving you a future view of your business – instinctively, business owners will look back at prior periods to assess performance. There’s value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than just backwards. Forecasting is the satnav, showing you the road ahead, rather than the rear-view mirror showing you the road you’ve already travelled.
  • Helping you scenario-plan – with a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning ‘What if…?’ questions. Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time. If option B performs better than option A, that’s invaluable information when defining your next strategic move.
  • Making informed, evidence-based decisions – having ‘the full picture’ of combined historic numbers, forecasts and longer-term projections aides your business decision-making. Forecasting gives you solid evidence on which to base your strategy, and helps to red flag any threats that are looming on the horizon – giving you the best possible information to keep your executive team informed and on the ball.
  • A deeper relationship with your accountant – forecasting also helps us to get a far more granular view of your business. This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.

Talk to us about the benefits of forecasting

If you want to get in control of the destiny and results of your company, come and talk to us. Forecasting helps you highlight your future threats and opportunities – and create a proactive strategy to improve the performance of your business.

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Why Productivity Matters and What You Can Do About It

Written by webadmin on . Posted in People and Culture, Uncategorised.

Productivity is a term linked to strong economies, successful businesses, and the efficiency of clever staff. If businesses were more efficient, we’d see fewer failures, more jobs, and better incomes for everyone.

According to the Xero Small Business Insights special report in Australia, the most productive industry in 2023 was wholesale trade ($214.20/hour), while hospitality lagged at $40.20/hour. Though productivity dipped across all industries, ten sectors, including manufacturing, agriculture, and construction, outperformed the national average ($100.30). Western Australia was the most productive state ($102.50/hour), with productivity 15% higher than Tasmania ($89.00/hour), the least productive state.

What is Productivity?

Productivity measures how efficiently a business turns inputs into outputs. The more productive you are, the better you turn resources like labour, capital, or materials into products or services you can sell.

Types of Productivity

  1. People Productivity: How much work it takes to deliver products or services to customers, usually measured as hours worked per dollar earned.
  2. Financial Productivity: How well a business monetises its investments in assets like machinery, often measured as the return on capital invested.
  3. Materials Productivity: How much a business spends on materials to generate sales, including inventory and energy.

Why Productivity Matters

More productive businesses get more from less. This boosts their potential to profit, handle inflation or slowdowns, and withstand price competition. Productivity gains are harder to come by nowadays, but digital tools have levelled the playing field, allowing small businesses to compete with larger ones.

How to Increase Productivity

There are four main ways to boost productivity:

  1. Better Tools: Tools amplify efforts. Invest in software or equipment that reduces manual work. For instance, a booking system that integrates with your calendar and payment systems.
  2. Smarter Methods: Continuously review and improve your processes.
  3. Skilled Workers: Invest in training and development.
  4. Entrepreneurship Mindset: Embrace optimisation and innovation.

Increasing Productivity Checklist

  1. Better Tools:
    • List potential investments and their costs.
    • Estimate the return on each investment.
    • Choose the best mix of affordability and impact.
  2. Smarter Methods:
    • Map out and document your work processes.
    • Identify and address friction points.
    • Implement software for repetitive tasks.
    • Align processes with customer preferences.
  3. Skilled Workers:
    • Ensure clear job descriptions and training.
    • Regularly provide and receive feedback.
  4. Entrepreneurship Mindset:
    • Look for scaling opportunities.
    • Stay open to acquisitions.
    • Focus on niche opportunities.
    • Continuously improve supply chains.
    • Hire and empower entrepreneurial staff.

Boosting Productivity is an Attitude

Small businesses can significantly improve productivity by constantly refining processes, investing in tools, and eliminating inefficiencies. With smart investments in teams and technology, the benefits will add up. Efficient businesses experience fewer delays, miscommunications, and wasted efforts, leading to increased satisfaction and profit.