Australian SMEs Ramp Up Borrowing Ahead of Payday Super Changes

According to OnDeck Australia, loan applications from SMEs surged by 42% year-on-year in the December quarter of 2025. This increase indicates a move towards investment-led borrowing, reflecting renewed confidence among business owners. Cameron Poolman, CEO of OnDeck Australia, noted that the data reveals a substantial change in SME behaviour, with businesses transitioning from defensive borrowing to seeking funds for growth initiatives.

Concurrently, the Australian Taxation Office (ATO) has intensified enforcement actions on unpaid taxes, prompting many SMEs to seek financing solutions to manage their tax obligations. Additionally, the upcoming Payday Super reforms will require employers to pay the 12% superannuation guarantee concurrently with wages, rather than on a quarterly basis. This change is expected to have a material impact on SME cash flow management.

Bill Baker, CEO of SaaS platform Lend, highlighted that under the current quarterly system, unpaid superannuation contributions effectively serve as a short-term liquidity buffer for businesses. The shift to simultaneous payment with wages will eliminate this buffer, potentially reducing borrowing capacity by 7–15%, depending on the lender's assessment models.

In response to these developments, finance brokers are proactively assisting SME clients in understanding and preparing for the financial implications of the Payday Super reforms. By employing lender-style serviceability tools and predictive modelling, brokers aim to help businesses navigate the upcoming changes and secure appropriate financing solutions.

As the 1 July 2026 implementation date approaches, it is crucial for SMEs to assess their financial positions and explore suitable funding options to ensure compliance with the new superannuation payment requirements while maintaining healthy cash flow.