If you're an Allied Health business owner, chances are you've already got a few dates circled on the calendar this July: Quarter 4 BAS payments are due, Quarter 4 superannuation contributions need to be finalised, Award Rate increases are flowing through, school holidays are approaching. 

And now Payday Super has arrived.

As both an allied health business owner and accountant, I understand that many practice owners are feeling the pressure of yet another compliance change. Through my role at splose, I also have the privilege of speaking with practice owners across Australia every day, and cash flow is one of the most common challenges raised.

The reality is that Payday Super is no longer something to prepare for in the future. The time to act is now. Practice owners should be reviewing their payroll processes, cash flow forecasting and software systems to ensure they can meet the new requirements and avoid unnecessary compliance risks.

While the transition may create some short-term challenges, particularly during the first year, there may also be long-term benefits for businesses that embrace the change and adapt their financial processes accordingly.

Under the previous system, employers generally paid superannuation contributions on a quarterly basis. This meant businesses could hold super liabilities for several weeks or months before payment was required.

Under Payday Super, employers are now required to pay superannuation contributions much closer to the time employees are paid, with contributions generally required to reach employees' super funds within seven business days of payday.

In simple terms:

Previous system

• Wages paid weekly, fortnightly or monthly
• Super paid at any time, but minimum quarterly

Payday Super

• Wages paid weekly, fortnightly or monthly
• Super paid alongside or immediately following each pay run

For businesses, the overall superannuation cost remains exactly the same. What changes is the timing of the payments which impacts cashflow in the short to medium term.

The primary goal is to ensure employees receive their superannuation sooner and reduce instances of unpaid or late super.

For employees, this means:

• Super arrives in their fund sooner
• Better visibility of contributions
• Earlier investment of retirement savings
• Greater confidence that entitlements are being paid correctly

For employers, it means moving from a quarterly obligation to a payroll-linked process.

The biggest impact for most practices will be cash flow.

Historically, many businesses have become accustomed to holding super liabilities until quarterly payment dates. This creates larger payment events every three months.

Under Payday Super, those liabilities now need to be funded progressively throughout the year.

For example, a clinic with a monthly super obligation of $10,000 may previously have paid approximately $30,000 each quarter.

Under Payday Super, that same clinic may simply pay around $5,000 alongside each fortnightly payroll cycle.

While the annual cost remains unchanged, the timing of payments changes significantly.

For many Allied Health businesses, July is already one of the most cash-flow-intensive months of the year.

Practice owners may be managing:

• Quarter 4 BAS obligations
• Final quarterly super payments
• EOFY accounting requirements
• Annual wage increases
• Insurance renewals
• General operating expenses
• The implementation of Payday Super

For many Allied Health providers, July also coincides with school holidays. While some services remain busy, many practices experience reduced utilisation as therapists take annual leave, clients travel, and appointment volumes temporarily soften.

This can create additional cash flow pressure at a time when several significant business obligations are already falling due.

If you're already feeling stretched, you're certainly not alone.

1. Review Your Cash Flow Forecast

Understand what your average superannuation liability is each pay cycle.

Ask yourself:

• What is our weekly, fortnightly or monthly super cost?
• How will this affect our working capital?
• Do we have sufficient cash reserves?
• Are there periods of the year where cash flow is already under pressure?

Many practices will find that the annual cost doesn't change, but the cash flow timing does.

2. Speak With Your Accountant or Bookkeeper

Every business is different.

Your accountant can help you:

• Model the cash flow impact
• Review payroll processes
• Ensure compliance
• Adjust forecasting and budgeting
• Identify any process improvements

If you're unsure how Payday Super affects your practice, now is the perfect time to have that conversation.

3. Review Your Payroll and Accounting Software

Most payroll and accounting platforms, including Xero and QuickBooks, have been preparing for Payday Super requirements.

Now is the time to ensure your systems are configured correctly and your payroll processes align with the new obligations.

Keep an eye out for communications from your software provider regarding:

• Payroll updates
• Super clearing house processes
• Automation opportunities
• New compliance settings

If you're unsure how to configure your payroll system, seek advice from your accountant, bookkeeper or payroll specialist.

4. Embed Super Into Your Payroll Process

One of the most effective ways to adapt is to start viewing superannuation as a standard payroll expense rather than a quarterly liability.

By incorporating super payments into each pay cycle, businesses can improve visibility over labour costs and reduce the risk of large quarterly payment shocks.

While many business owners understandably view this as another compliance burden, there may be a silver lining.

One of the biggest challenges for growing allied health businesses is managing large quarterly liabilities.

By aligning super payments with payroll, many practices may find:

• Fewer large cash flow shocks
• More predictable operating expenses
• Simpler forecasting
• Better visibility of true labour costs
• Improved financial discipline

As an accountant, I've often seen businesses get caught out by large quarterly super payments simply because the cash was sitting in the operating account and was unintentionally absorbed into day-to-day operations.

Payday Super reduces this risk by bringing the liability forward and creating a more consistent payment rhythm throughout the year.

In many ways, super becomes just another payroll expense rather than a quarterly event that arrives every few months.

There is no doubt that July can feel like the perfect storm for allied health business owners.

Between BAS payments, final quarterly super obligations, school holidays, annual leave, EOFY administration and now the introduction of Payday Super, many practices are feeling pressure on both cash flow and administration.

If you haven't already reviewed how Payday Super will impact your business, now is the time to act.

My advice is simple:

• Understand your obligations under the new rules.
• Review your cash flow forecasts and working capital requirements.
• Speak with your accountant or bookkeeper.
• Ensure your payroll and accounting software are configured correctly.
• Educate your leadership and administration teams on any new processes.

As an accountant, I see Payday Super as more than just a compliance change. As a business owner, I recognise the challenges it creates. However, once embedded into normal payroll processes, many businesses may find they have greater visibility over their labour costs and fewer large quarterly cash flow surprises.

The transition starts now. Taking action early will place your practice in the strongest position to navigate the change confidently and continue focusing on what matters most — delivering exceptional care to your clients and communities.

About the Author: Adam Coulter is an accountant, business owner of Geelong Neuro Centre, and the Community Manager for splose. Driven by a passion for supporting the healthcare industry, a journey sparked alongside his wife, an Occupational Therapist, Adam combines financial expertise with modern practice management tools to help healthcare professionals streamline their businesses and maximise their time with clients.
 

Disclaimer: This article contains general information only and should not be considered accounting, taxation or financial advice. Business owners should seek advice from their accountant, bookkeeper or financial adviser regarding their specific circumstances.