Payday Super Cashflow Calculator

Additional Working Capital for Payday Super:

‍This gives an estimate of the one-off, non-recurring, increase in working capital you may need when Payday Super starts, due to the loss of your current super ‘float’. This figure estimates the extra cash that must be available in the business's bank account on the day the new Payday Super rule takes effect.

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• It is the immediate cash injection needed to cover the loss of the timing advantage, or "float," that the business currently benefits from
• Once this amount of capital is secured and used to cover the initial, earlier super payment, it becomes part of the business's permanent working capital base; it is not needed again the following year.

The calculator excludes Workcover and Payroll tax. You should add a further working capital allowance to cover these costs.

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How the calculation works:

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If you currently pay quarterly then the super you accrue in Week 1 is held for nearly 13 weeks. However, the super you accrue in Week 13 is held for almost no time before the quarterly payment is due. The true cash benefit to your business's working capital is the average of this holding period.

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To get the average over the 13 weeks we divide by 2. Thus, it is Total Super x 6.5 (13 divided by 2) for quarterly payers.

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Cash Required:

‍This helps you understand the level of funding needed to safely cover payroll and super while you wait for clients to pay their invoices. This is the total weekly payroll plus super cost multiplied by your debtor days (divided by 7), representing the total cash tied up while waiting for client payments.

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Disclaimer:

This is a guide only and should be used as an indicative planning tool. It is not financial advice. Australian Superannuation Guarantee (SG) calculated at 12%.