When is superannuation due for the Christmas period?

For the quarter ending 31 December 2025, super guarantee contributions must be received by the employees' funds by 28 January 2026. We recommend paying a few days early to allow for processing delays.

How does holiday leave affect my business cash flow?}

Holiday leave can create a "payroll spike." You may need to pay staff in advance before a shutdown, plus an additional 17.5% Leave Loading if applicable. This happens right when income often slows down, creating a cash flow gap.

Watch Your Cash Flow: Navigating the Holiday Business Crunch

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Introduction

As the end of the year approaches, business owners often feel pulled in two directions. On one hand, there is the festive rush and the prospect of a well-earned break. On the other, there is the financial pressure of the "holiday cash crunch."

December and January represent a unique challenge for Australian businesses. It is a period where expenses traditionally spike just as revenue in many industries begins to slow down.

To ensure you can enjoy your break without financial anxiety, it is vital to look ahead at the next six weeks. A clear plan now can protect your cash position and ensure you start 2026 on a strong footing.

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The "Triple Threat" to Holiday Cash Flow

Your business will handle several major outgoings in a very short window. It is important to visualize these not just as standard monthly costs, but as a compounded hit to your bank balance.

1. The Payroll Spike and Leave Loading

December payroll is often the heaviest of the year. Not only are you paying standard wages, but if you have staff taking annual leave, you may also be liable for Leave Loading (usually 17.5%) on top of their base rate.

Additionally, if you pay staff in advance before a shutdown period, you are effectively funding several weeks of payroll in a single transaction. This requires a significant reserve of available cash.

2. The "Shutdown" Supplier Run

Just as you are preparing to close or slow down, so are your suppliers. Many suppliers will request payment of outstanding invoices before they close their books for the year. You may face pressure to settle accounts earlier than your usual 30 or 60-day terms.

3. The January Compliance Hangover

The most common mistake businesses make is surviving December only to run out of cash in January. You must reserve cash now for the statutory obligations due in early 2026:

Superannuation: Super guarantee contributions for the quarter (Oct–Dec 2025) must be received by funds by 28 January 2026.
BAS Lodgement: The December quarter Business Activity Statement (BAS) is also due in early 2026. If you have had a strong trading period in November and December, your GST and PAYG withholding liabilities will be higher than usual.

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The Income Gap

While expenses are rising, income often pauses.

For many industries—particularly construction, professional services, and B2B consulting—trading essentially stops for two to three weeks. If you stop working on December 20th, you may not see new cash flow coming in until late January or early February.

You need enough liquidity to cover the "outgoings" listed above during this "reduced income" period.

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Strategies to Protect Your Position

You cannot avoid these expenses, but you can manage them. Here are four steps to take immediately.

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Review Your Budget Through to February

Do not just look at this week’s bank balance. Project your cash flow out to February 2026. List every major payment date (Super, Rent, Payroll, Tax) and compare it against your expected incoming cash. If you see a deficit, you have time to act now.

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Check Your Bank Balance Daily

During December, cash moves fast. Make it a habit to check your bank balance every morning. This ensures no automatic payments catch you off guard and allows you to make quick decisions if funds get tight.

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Delay Non-Essential Spending

Now is likely not the time for impulsive capital purchases. If a purchase is not essential to generating revenue immediately, delay it until February when your cash flow stabilizes. Preserve your cash buffer for payroll and tax obligations.

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Chase Invoices Immediately

If you have outstanding invoices, follow them up now. Do not wait until the week before Christmas. Send reminders today. If you can collect payment before your clients close their accounts for the holidays, you will have a much stronger safety net.

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Conclusion: Don't Go It Alone

The holiday season should be a time of rest, not stress. The key to a relaxing break is knowing that your financial obligations are covered.

If you are concerned about your ability to meet holiday payroll or January tax obligations, speak with your accountant before issues build up.

At Trinity Accounting Practice, we help business owners forecast their cash flow and plan for these seasonal peaks. A quick conversation now can prevent a crisis in January.

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Trinity Accounting Practice

Trinity Accounting Practice
159 Stoney Creek Road Beverly Hills NSW 2209
02 9543 6804
Booking Link https://calendly.com/ramy-hanna
www.trinitygroup.com.au

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