Three months into FY26, businesses across Western Sydney and nationwide are already feeling the impact of recent tax and compliance changes.

From ATO debt reforms to superannuation increases, the financial landscape is shifting and that means new challenges for cash flow, planning, and everyday operations.

Whether you’re managing payroll, looking to invest in growth, or just trying to stay ahead of rising costs, understanding these changes is key to protecting your margins and keeping your business on track.

What’s Changed and Why It Matters for Cash Flow

Several important reforms are already in effect this financial year, with more locked in for the next 12 to 24 months.

These changes are shaping business strategy, tax planning, and debt management across the country.

• ATO Payment Plan Interest Is No Longer Tax-Deductible – Previously, businesses could claim the interest paid on ATO payment plans as a tax deduction, reducing the real cost of carrying tax debt. That’s no longer the case from 1 July 2025, making it significantly more expensive to fall behind on obligations.
• Superannuation Guarantee Rate Increased to 12% – From 1 July 2025, employers must contribute 12% (up from 11%) to employee super, a change that directly increases payroll expenses across the board.
• Payday Super Coming July 2026 – From 1 July 2026, businesses will need to pay super contributions every pay cycle, instead of quarterly. This will shorten cash retention cycles, impact payroll planning, and increase admin complexity for many SMEs.
• Wages and Award Rate Increases – Wages have increased across multiple modern awards, putting further pressure on payroll, especially in sectors like construction, trades, manufacturing, hospitality, and transport.
• Operating Costs and Inputs Still High – Interest rates, insurance, and input costs remain elevated, adding pressure to margins and highlighting the need for smarter capital planning and cost control.

These aren’t just policy updates, they directly affect the cost of running your business, how you manage tax, and your ability to fund growth without draining cash flow.

From trade-based operators managing payroll pressures to growing firms preparing for FY26, we’re helping business owners take proactive steps to protect cash flow, reduce financial pressure, and set their businesses up for sustainable growth.

Here’s what that looks like in practice:

• Restructure or refinance ATO debt to reduce interest costs and avoid future pressure
• Access working capital to manage wages, BAS, suppliers, and day-to-day expenses
• Fund new equipment, vehicles or contracts without compromising cash reserves
• Finance supplier and inventory costs to prevent cash flow bottlenecks
• Simplify and streamline finance facilities to better match how your business actually operates
• Separate business and personal debt to reduce risk and support future growth

No matter your size or sector, now is the time to check that your finance strategy supports your cash flow, tax position, and growth plans for FY26

Join the Conversation at WEXPO 2025

Renati Barel from World Class Finance will join Michael Moon (Tax Assure) and Jason Cantore (Murchisons) on the WEXPO 2025 business finance panel: “The Fixers: From Stress to Strategy in Cash Flow, Tax Debt & Finance”

This session will unpack how financial structures, tax obligations, and growth plans intersect and why the right strategy can strengthen cash flow, reduce risk, and keep your business moving forward.

Click here to register for the panel

Get in Touch with World Class Finance

Whether you’re managing cash flow pressure, ATO debt, or planning your next move, now’s the time to make sure your finance strategy is working for your business, not holding it back.

Contact World Class Finance on 1300 565 123
Click here to submit an enquiry.

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