iscover 
Undertaken by non-bank lender Prospa and market research firm YouGov, the Prospa SME Sentiment Report (February 2026) indicated that while 70 per cent of SMEs remain confident they can stay cash flow-positive over the next 12 months, this confidence sits alongside mounting compliance obligations and deferred investment decisions.
From 1 July 2026, employers will be required to pay superannuation contributions at the same time as wages, rather than quarterly – a structural shift that changes the timing of cash outflows, not the amount, but materially alters working capital dynamics for small businesses.
According to the SME survey, 41 per cent of businesses either lack awareness of the Payday Super reform or do not fully understand it, and 30 per cent are unsure or unprepared to meet the new payment cadence.
The new timing imposed by the Payday Super reforms is significant. According to the research, 42 per cent of SMEs hold two months or less of expenses in reserve, including 16 per cent with one month or less and 14 per cent with no reserves at all. On average, business owners are operating with just 2.7 months of expenses as a buffer.
Bringing super forward into each pay cycle – weekly, fortnightly, or monthly – compresses that margin for error, particularly ahead of the end of financial year (EOFY), when cash is already stretched.
Beau Bertoli, co-founder and chief revenue officer at Prospa, said the reform would have a “massive” impact on SMEs’ cash flows.
“For businesses with thin buffers, moving super payments forward compresses working capital. The risk isn’t the rule itself; it’s being caught unprepared and being non-compliant,” he said.
The compression of working capital is influencing broader decision making, according to the research.
Meanwhile, EOFY investment decisions are slowing. Although the $20,000 instant asset write-off remains available until 30 June 2026, only 18 per cent of SMEs plan to purchase eligible assets before EOFY, 29 per cent remain unsure, and nearly 5 per cent mistakenly believe the incentive has already ended.
“What we’re seeing is hesitation, not apathy,” Bertoli said.
“Businesses aren’t saying no to investment – they’re stuck deciding when and in what order. When cash is tight and obligations are moving faster, sequencing matters.”
With one in three SMEs (34 per cent) expecting to access external finance over the next 12 months (up from 31 per cent in September 2025), demand for working capital solutions is building, with those planning to borrow expecting an average facility size of $23,181.
“For many SMEs, this year isn’t about bold expansion – it’s about staying liquid, compliant and flexible,” Bertoli added.
“The businesses that plan early, model their cash flow properly and get advice will be in the strongest position to invest when the timing is right.”
‘Critical window’ for brokers
Roberto Sanz, general manager of sales and operations at Prospa, said that the Payday Super reforms represent a “critical window” for brokers working with SMEs.
“This transition creates a genuine advisory moment for brokers,” he said.
“Payday Super is forcing conversations about cash flow timing at exactly the moment businesses are making EOFY decisions, which makes proactive planning far more valuable than reactive solutions later in the year.
“The most effective brokers aren’t starting with products – they’re starting with timing.”
Sanz highlighted a number of questions that brokers should be asking their clients:
- How often do you pay staff, and what does that mean for super frequency?
- Do you understand the impact that Payday Super will have on your business cash flow?
- How are you managing your cash flow, and how many months of cash reserves do you hold on average?
- Have you considered having available funding options to overcome your future cash flow gaps?
Sanz added: “These questions matter because 41 per cent of small businesses either do not understand Payday Super or do not know about it, and another third are not sure they are ready. Brokers who can turn this rule change into a simple cash flow conversation will stand out as real advisers, not just go-betweens.”
According to Prospa’s research, 30 per cent more brokers are now actively helping their SME clients manage cash flow needs.
With changes to Payday Super fast approaching, Sanz said that he anticipates two spikes in demand for working capital: one in the final quarter of the financial year from proactive businesses and one in the first quarter of the new financial year from late adopters.
He added: “With one in three small businesses already planning to look for outside funding in the next year, brokers can help match funding to what the business really needs, such as covering timing gaps, saving extra money, or staying flexible instead of just focusing on growth.
“The brokers who help the most will be those who see Payday Super as a cash flow planning issue, not just a rule to follow.”
[Related: SMEs push for growth despite ATO and Payday Super pressures]