GoCardless calls for stronger small business support following rejection of Payday Super extension

By Newsdesk

November 04 2025
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GoCardless has urged the federal government to increase support for small businesses after the House of Representatives voted against a proposed amendment to the Payday Super legislation that would have given employers an additional 18 months to comply with new payment requirements.

GoCardless calls for stronger small business support following rejection of Payday Super extension

Ian Boyd, GoCardless General Manager ANZ, said the vote means all Australian employers will be required to meet the new obligations from 1 July 2026.

“The vote against the proposed 18-month extension for small businesses to comply with Payday Super legislation means that new requirements will impact all Australian employers from July 1 2026,” Mr Boyd said.

“This is welcome news for workers nationwide. That said, there is an acknowledged increased burden on small business cash flow, and as such, we’d like to see an increase in support for small businesses as we make the transition.”

Mr Boyd said the additional compliance costs come at a time when small businesses are already under significant financial pressure.

“Australia’s 2.7 million small businesses represent 98 per cent of all businesses in the country, and they are currently bleeding money,” he said.

“Our latest data shows that 17 per cent of Australian small-to-medium businesses now lose over $2,500 per month to late payments, up 55 per cent from 2024. One in five SMBs spends six to 12 full working days a year just chasing overdue invoices. The situation has become so dire that 10 per cent of SMBs have considered closing permanently due to payment delays alone.”

Mr Boyd warned that late payments continue to create a “domino effect” across the economy, amplifying the risks faced by businesses already in “survival mode”.

“The scale of the issue is now at a crisis point. It’s a domino effect because if an SMB is getting paid late, it has a knock-on effect for the entire supply chain,” he said.

“When small businesses are already in survival mode, dealing with delayed payments, additional monthly commitments compound the pressure on their cash flow.”

Mr Boyd said policies aimed at strengthening payment systems should focus on both outflows and inflows for small businesses.

“We need to be mindful not to exacerbate the problem of money leaving businesses faster than ever, without putting in measures that improve the rate at which money comes in the door,” he said.

“This is key to ensuring our local industries can continue to make new hires and grow.”

GoCardless data shows that 17 per cent of SMB owners and decision-makers believe that if customers paid on time, they could hire more staff.
A further 11 per cent said they could increase wages, while nearly one in four said timely payments would allow them to invest in new services or business expansion.

“Supporting small businesses to succeed isn’t just good for them, it’s essential for Australia’s productivity and innovation,” Mr Boyd said.

“SMBs are the backbone of our economy, and they deserve policy that helps them thrive, not just survive.”

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