How Payday Super Will Change the Way Your Business Manages Money If you run a small business with employees, you’re probably used to paying superannuation once a quarter. You set aside the money, lodge it by the due date, and move on. It’s a rhythm most businesses have followed for years. That rhythm is about to change significantly. From 1 July 2026, the new Payday Super rules require you to pay super at the same time as your employees’ wages. Not quarterly. Every single payday. And the money must reach your employees’ super fund within seven business days. For small businesses, this is one of the most impactful changes in years — and the biggest area it will hit is your cash flow. What This Means in Practice Under the current system, if you pay staff fortnightly, you only need to settle super four times a year. That gives you up to three months of breathing room between payments. Many businesses use that buffer to manage seasonal dips, cover unexpected expenses, or simply keep operations running smoothly. Under Payday Super, that buffer disappears. Instead of four lump-sum payments, you’ll be making 26 (fortnightly) or even 52 (weekly) super payments per year. The total amount you owe doesn’t change, but the timing does — and timing is everything when it comes to cash flow. Industry modelling suggests the average small-to-medium business paying staff fortnightly could need an additional $124,000 in working capital from day one just to manage the transition. That’s not extra money you’re paying — it’s money you need available sooner than before. Which Businesses Will Feel It Most? Not every business will be affected equally. If your revenue is steady and predictable, you may adjust without too much difficulty. But if your business experiences seasonal fluctuations, irregular income, or operates in industries like hospitality, retail, or construction, the shift could create real pressure. Research suggests that more than one in five small and medium businesses could struggle with the cash flow impact of these changes. Businesses that have historically relied on the quarterly super cycle as an informal cash flow tool will feel the pinch the hardest. Treasury has been transparent about this. They’ve acknowledged that the reform may trigger financial difficulties for some businesses — particularly those already operating on tight margins. How to Prepare Start modelling now. Map out what your super obligations will look like on a per-pay-run basis, not quarterly. Understand the dollar impact across a full year. Build a cash buffer. If possible, begin setting aside super with every pay run now, even though it’s not yet required. This helps you adjust gradually rather than facing a sudden shift in July 2026. Review your payment terms. If you invoice clients on 30 or 60-day terms, consider whether your collection cycle aligns with more frequent super payments. Talk to your accountant. A cash flow forecast tailored to your business can identify potential shortfalls early, before they become a problem. Don’t Wait Until July The businesses that will navigate this transition smoothly are the ones that start planning now. Cash flow surprises are the kind of problem that’s far easier to prevent than to fix. If you’re unsure how Payday Super will affect your business financially, get in touch with Collins Hume today . Our Strategy360 team can help you build a clear cash flow plan so you’re ready well before the 1 July deadline. A cash flow conversation now could save you a lot of stress later. Access more Payday Super resources here »

When to Sell Your Business (and why you should start planning now even if you’re not ready) Deciding to sell your business is never just a financial decision. It’s personal. You’ve invested years of effort, energy and sacrifice into building something meaningful so it’s natural to feel unsure about when (or whether) to step away. But here’s the reality most business owners discover too late: The best time to prepare for selling your business is long before you actually want to sell. Waiting until circumstances force your hand — burnout, health issues, market shifts or unexpected life changes — often means accepting less than your business is truly worth. Even if selling isn’t on your radar right now, proactive exit planning puts you back in control. Why smart business owners plan their exit early There’s no universal “perfect time” to sell a business. However, experienced advisers see the same themes come up again and again when owners start considering their next chapter. These signs don’t mean you must sell, but they do signal it’s time to start planning. You’ve lost passion or momentum Every business has tough days. But when the bad consistently outweigh the good and motivation fades, it’s often a warning sign of burnout. Early planning gives you options, whether that’s restructuring, delegating more or preparing for a future exit. Your business is performing strongly Ironically, thriving businesses attract the strongest buyers. Strong profits, a capable team and clear growth potential place you in a powerful negotiating position. Planning while your business is healthy allows you to maximise value and avoid rushed decisions later. Your priorities are changing Family, lifestyle, new ventures or simply wanting more freedom — priorities evolve. If your focus is shifting, now is the time to assess how prepared your business is to operate without you at the centre. A well-planned business is easier to sell — and easier to step back from. Your industry is changing Technology, regulation and market conditions don’t stand still. If disruption is on the horizon and you’re unsure you want to lead the next phase, early preparation gives you flexibility before  external pressures reduce your options. Selling is emotional — planning makes it easier Selling a business isn’t just a transaction. It’s a transition. Many owners struggle with letting go of something that’s defined a large part of their life. Having a clear vision for what comes next — retirement, consulting, travel or a new venture — makes the process far smoother and more rewarding. Seller’s remorse is common. So is relief when an exit is well planned and well timed. Even if you’re not selling, exit planning strengthens your business Exit planning isn’t about walking away tomorrow. It’s about improving profitability, reducing owner dependency, documenting systems, strengthening management, understanding your business value and protecting against unexpected change. These steps don’t just prepare you for a future sale; they make your business stronger, more resilient and more enjoyable to run right now. In many cases, owners who start exit planning early end up building businesses they don’t need to sell. And that’s exactly what buyers want! Not planning to sell? That’s exactly why now is the right time to start. Don’t wait for burnout, market shifts or life events to force your decision. A simple exit readiness conversation can help you understand your business value, identify gaps and put a practical plan in place — whether selling is five years away or never. Start preparing while you still have choices. Reach out for a confidential discussion and take control of your future today. Inspiring, Powerful, Meaningful Advice for Your Business

Using Downsizer Contributions When Selling Your Home When clients sell a long-held family home, they may be able to channel part of the proceeds into superannuation by using the downsizer contribution rules. Basic Eligibility Conditions To qualify, the seller must meet a number of conditions: They must have reached the eligible age of 55 years (at the time of making the contribution). The eligible dwelling must be located in Australia and have been owned for at least 10 years. The disposal of the dwelling must be exempt from CGT under the main residence exemption to some extent (full exemption not required). The contribution must be made within 90 days of settlement, and an election form must be lodged with the fund no later than when the contribution is received. The downsizer contribution can only be used once per individual and is limited to the lesser of the gross sale proceeds or $300,000 per person. Does the Sale Need to be Fully CGT-exempt? A common question is whether the sale must be fully exempt as the main residence. Importantly, a full exemption is not required. Even if only part of the capital gain is exempt under main residence rules, the property may still qualify — provided all other conditions are met. Is the Property Required to be the Main Residence at Sale? Equally important: the property does not need to be the seller’s principal residence at the time of sale. Living in the property for some years and renting it out later does not disqualify it, as long as the ownership and residence history supports at least a partial main residence exemption.  Special Rules for Pre-CGT Properties Where a property was acquired before CGT began, the rules look at whether part of the gain would have been disregarded had CGT applied. A key requirement is that there is a dwelling that qualifies as the main residence. Disposal of vacant land will generally not satisfy the test and therefore will not meet downsizer requirements.  Eligibility of a Non-Owning Spouse It is common for only one spouse to be listed on the property title. A non-owning spouse may still qualify for a downsizer contribution if all other requirements are met, apart from ownership. However, a spouse who never lived in the property and could not reasonably have treated it as their main residence is unlikely to be eligible. Preservation and Access to Funds A downsizer contribution is subject to the standard preservation rules. Once contributed, the amount cannot be accessed until: You reach preservation age (60) and retire, or You reach age 65, regardless of retirement status. Consider future cash flow needs before making the contribution. Before you Contribute Although seemingly straightforward, downsizer contributions involve several nuances. Please contact Collins Hume in Ballina if you have any questions.

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