Payday arrives whether or not the client has paid you

There is one bill in a trade business that nobody wants to be late on: the pay run. Your apprentice has rent. Your leading hand has a family. The subbie who filled in last week needs to hear that the transfer is coming. All of that sits on a calendar that has no connection to when your customers decide to pay.

Why do wages hit harder than other bills?

You can ring a supplier and ask for another week. You cannot easily do that with the people who turn up at six in the morning. Late wages cost you trust fast, and good tradespeople have plenty of options.

Wages also come with companions. Tax withheld from pay and super contributions travel with every pay run, so one shortfall is really three.

Quick refresher on the rules that shape the timing:

• The Fair Work Ombudsman says employees must be paid at least monthly, and awards or agreements may require more often.
• Pay slips are due within one working day of payment.
• Since 1 July 2026, payday super means super contributions must reach the employee’s fund within seven business days of each wage payment.

That last point matters for cash planning. Under the old system super could sit in your account until the quarter ended. Now it follows wages closely, so the money has to be there earlier.

What does the gap look like on a pay week?

An illustrative example, not a real business, shows how it feels.

Pay-week item	Illustrative amount
Gross wages for four workers	$9,200
Super that follows the pay run	Calculated on that pay
Subbie invoices due this week	$6,500
Client payments expected	$12,000, due in nine days

Costs of around $15,700 plus super are due before the $12,000 arrives. The business is not unprofitable. It is simply funding two weeks of labour ahead of its customers.

Plot your own version in the cash flow gap planner, then you can see how large the shortfall is and on which date.

How should I treat employees versus subbies?

They are different relationships, and the cash flow works differently.

Employees are paid through payroll, with tax withheld and super paid. Their pay cycle is fixed, and you carry the full cost whether or not work is flowing.

Subcontractors invoice you, typically under their own ABN, and are paid on terms you agree. You have more flexibility, but only if the terms are clear at the start.

For subbies, set out three things in writing before work begins:

1. The price or rate and what it covers.
2. The date they will be paid, such as a set day after a valid invoice.
3. What happens with variations and rework.

If you are chasing your own payment from a builder, see slow-paying builders for a method that keeps the paperwork on your side. And if you are holding back tax withheld from pay, read our guide to PAYG withholding debt so it does not become a bigger problem.

What are my options for covering payroll?

Start with the free ones: forecast, set aside, and negotiate. Then consider funding.

• A wages buffer. Hold one pay cycle of costs in a separate account, topped up each week.
• A short-term loan. A lump sum repaid over weeks or months, sized on turnover and bank statements. Typical unsecured amounts are $5k to $500k.
• A line of credit. A standing limit you draw for pay weeks and repay when customers pay. See line of credit for tradies.
• Wages-specific finance. Our wages finance page covers funding aimed at payroll.

Whichever you choose, tie it to a clear repayment source, such as a specific unpaid invoice. A lender and your accountant will both be more comfortable with a bridge that has a visible end.

When you are ready to explore it, see what funding fits your pay cycle.

How do I keep my best people when cash is tight?

Reliability is the cheapest retention tool you have. A crew that is paid on time, every time, tends to stay, and tends to cover for you when a job goes sideways.

A few habits help:

• Never let the pay run be the thing you decide last.
• Tell your leading hand early if a payment is delayed and what you are doing about it.
• Pay subbies you want to see again promptly, even if it means using a bridge.
• Review your forecast every week, not just at the end of the month.

What records make pay weeks less stressful?

Good records turn pay week from a scramble into a routine. Keep timesheets or job allocations for each worker, a running list of subbie invoices with due dates, and a simple schedule of what tax and super amounts are due and when.

With payday super, the dates matter more than they used to, so put super reminders in the same calendar as pay runs. If your accounting software or payroll provider can calculate and lodge both together, use that feature. Fewer manual steps means fewer late payments and fewer surprises.

Take the pressure off payday

If your wages bill is outrunning your receipts, the fix does not have to be dramatic. Enquiring takes about a minute, and there is no credit check when you first ask, so your credit file is not affected. We keep your details to ourselves instead of sending them to a pile of lenders, so no sudden stream of calls. A real person reads your situation and talks it through with you.

Be as accurate as you can on the form, especially around turnover and the number of people you pay, so we can match you to the right option straight away.

See if you qualify →