Short answer: If you can't make payroll, tell your staff early and work out the real number: net wages, PAYG withholding and super. Then go fastest first: a facility you already have, overdue debtors, a cash-flow loan (as little as 2 hours after approval with 6+ months trading), or a property-secured loan in as little as 24 hours for larger or repeat gaps.
What the law actually requires
Payday is set by the award, enterprise agreement or contract, not by when your customers pay you. Under the Fair Work rules employees must be paid at least monthly, and many awards and agreements require weekly or fortnightly pay. Wages have to be paid in money — cash, cheque or electronic transfer — and payslips must go out within one working day of payday (Fair Work).
The stakes went up recently. Since 1 January 2025, intentionally underpaying wages or entitlements can be a criminal offence. Honest mistakes are not covered, and small businesses that comply with the Voluntary Small Business Wage Compliance Code can’t be referred for prosecution (Fair Work). The practical point is simple: deciding to short-pay staff to get through a tight week is not a cash-flow strategy.
Why super can't be the thing you skip any more
For years, a business short on payroll could pay the wages and let the super catch up before the quarterly deadline. That slack is gone. Payday Super started on 1 July 2026, and super now has to be received by each employee’s fund within 7 business days of payday (ATO). Miss it and the new SG charge applies, with interest and penalties on top.
Unpaid super and unpaid PAYG withholding also reach past the company. Directors can be made personally liable for both through a director penalty notice. So when you work out what payroll costs this week, super is part of the number, not something for later. Our guide to Payday Super and cash flow explains what the change does to your working capital.
Work out the real number
Most owners short on payroll know the net figure, because that is what staff see. The cash you actually need is bigger.
- Net wages. What lands in employees’ accounts, including penalty rates, overtime and any leave being paid out this cycle.
- PAYG withholding. Not due on payday, but owed to the ATO with your next activity statement. Spending it on net wages just moves the hole to your BAS.
- Super. 12% of ordinary time earnings, now due at the fund within 7 business days.
Take a café with a fortnightly gross payroll of $40,000, all ordinary hours, as an example. Say $32,000 goes to staff as net pay and $8,000 is withheld. Super adds $4,800. That is $36,800 out of the account within about a week and a half, plus $8,000 owed at the next activity statement — $44,800 in total, not the $32,000 the owner had in mind. Borrow against the full figure, or you will be back here at BAS time.
Two more items catch people. Leave being paid out this cycle, such as annual leave loading or a resignation payout, can push one payroll well above the usual. And if your business is over your state’s payroll tax threshold, that return is due on its own date. Put both on the list before you settle on a figure.
Your options, ranked by speed
| Option | How fast | Best for | Watch out for |
|---|---|---|---|
| Talk to staff | Today | Every business, every time | It changes how they hear it, not what you owe or when |
| Chase overdue debtors | Today to a few days | Invoices already past due | Depends entirely on the customer |
| Draw on a line of credit you already have | Same day | Businesses with a facility in place | The limit may be lower than this payroll |
| Cash-flow loan | As little as 2 hours after approval | 6+ months trading, steady deposits | Sized to turnover |
| New line of credit | Median 24 hours on our book | Gaps that will recur | Set it up before the next shortfall, not during it |
| Property-secured loan | As little as 24 hours | Larger or repeat gaps, $20,000 to $5M | Everyone on the title must be able to sign |
| Invoice finance | Median 96 hours to set up | Gaps caused by slow-paying customers | The slowest to put in place, so rarely the fix for this week |
For a one-off gap, an unsecured business loan sized to the payroll is usually the cleanest answer. If the shortfall comes around every month, a business line of credit costs less to keep than repeated loans, and invoice finance fixes the cause when it is customers paying late. Our page on loans for payroll and wages covers the products in more detail.
Chasing debtors properly
Ring rather than email, and ring the person who approves payments, not the general inbox. Ask for a specific amount by a specific day. If a large invoice is stuck in someone else’s approval process, ask whether a part payment can go out this week. One phone call to the right person often moves more money than a month of reminders.
What to have ready for a payroll loan
- The payroll report from your software for this pay run, showing gross, net, withholding and super.
- Read-only access to your business bank account, connected early in the day.
- Your debtor list, so the lender can see the money that is on its way.
- Photo ID and your ABN, and every director able to sign today.
Talk to your staff before payday, not after
Staff forgive a tight week far more readily than a surprise. If there is any chance wages will be late, tell people before payday, in person, with a date you are certain you can meet. Don’t promise “Monday” if Monday depends on a customer you can’t control.
Say what you are doing to fix it. “We have a loan being approved and you will be paid by Thursday” lands very differently from silence. And keep it to the people affected: a payroll problem discussed in the lunchroom becomes a rumour about the business by Friday.
Then make sure the date holds. The single worst outcome is a second missed date, because that is when good staff start looking elsewhere.
Keep the paperwork clean as well. Payslips still go out within one working day of payday, and when the late amount is paid, make it obvious on the next one, so nobody has to work out from their bank statement whether they have been paid in full.
If you have a bookkeeper or payroll provider, bring them in on the same day you tell staff. They will need to know which amounts are being held back and when they will be paid.
When a payroll loan is the wrong answer
A loan fixes timing. It does not fix a business where wages, super and tax cost more than the work brings in. If this is the third payroll in a row you have struggled with, and the reason is not a late customer or a seasonal dip, borrowing just pushes the same problem a month down the road with a repayment attached.
Before borrowing in that situation, sit down with your accountant and look at pricing, hours and rosters. If the business can no longer pay its debts as they fall due, a registered insolvency practitioner is the right call, and the earlier the better.
A loan is the right answer when the money is coming — a progress claim, a large invoice, a seasonal peak — and simply isn’t here by payday.
Stop next fortnight's repeat
- Forecast thirteen weeks ahead. List every payday, super date and activity statement against expected receipts. Most payroll surprises are visible a month out.
- Keep payroll money separate. A second account that holds wages, PAYG and super as they accrue stops them being spent on something else.
- Shorten your terms. Deposits, progress billing and direct debit all close the gap between paying staff and being paid.
- Put a facility in place while things are calm. A line of credit sized to one payroll is cheaper to arrange before you need it than during a crisis.
More ideas for fixing the timing problem itself are in our page on cash-flow gaps.
Find out what you could have before payday
If payday is days away, the useful question is which option you qualify for and how quickly it could land. Our eligibility check takes about a minute, makes no credit enquiry and costs nothing. Tell us the payroll amount and the date, and you will know where you stand well before your staff do.
Frequently asked questions
Can I pay my staff a few days late if I tell them first?
Telling them is the right thing to do, but it doesn't change when wages are due under the award, agreement or contract. Treat any delay as something to fix in days, and fund the gap rather than let it run.
Can I pay wages now and super later?
Not without cost any more. Since 1 July 2026 super has to reach each employee's fund within 7 business days of payday, and late super attracts the SG charge.
Can a loan cover PAYG withholding as well as net wages?
Yes. Borrow for the whole payroll cost, not just the net pay, so the hole doesn't simply move to your next activity statement.
I've only been trading for four months. What are my options?
The cash-flow lane needs 6+ months trading. If you own property with equity, a property-secured loan doesn't depend on trading history and starts at $20,000.
How quickly could the money arrive?
A cash-flow loan can fund in as little as 2 hours after approval; our median is 24 hours. Starting early in the day, with your bank account connected, makes the biggest difference.
Does it cost anything to apply?
No. There's no cost to apply or check your eligibility. All costs are set out in writing in your loan offer before you sign anything.
Will checking my eligibility affect my credit score?
No. Our 60-second eligibility check doesn't make a credit enquiry. A credit check is only done later, with your consent, if you decide to proceed.
