Payroll · BAS

Superannuation Guarantee (SG) is the compulsory superannuation contribution a business pays for eligible employees. It’s a payroll cashflow obligation — and lenders often look for clean, consistent payroll behaviour when assessing business finance.

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What SG changes in real cashflow

SG is “quietly expensive” because it stacks on top of wages. For payroll-heavy businesses, SG timing is one of the most common reasons cash feels tight in certain weeks.

  • Payroll + SG often hits before your biggest customer receipts land.
  • Missed/late patterns can show up as “stress signals” in statements.
  • Growth months (new staff, overtime) amplify the SG load.
Where lenders “notice” SG
Bank regular super fund payments around payroll cycles
ATO consistency with reporting rhythm (monthly/quarterly)
Risk arrears patterns that can signal tight working capital
Story whether payroll obligations are controlled and predictable
Quick compliance checklist (SG)
  • Know your payroll “heavy weeks” (wages + SG + PAYG withholding can stack).
  • Keep payments consistent — sudden gaps look like pressure.
  • If you’re bridging a quarter, don’t mix payroll obligations with ad-hoc short-term fixes.
  • Use a facility that matches timing (rolling vs fixed-term), not a patch that creates new stress.

Real example: a workshop adds two staff and overtime in a busy month. Payroll rises immediately, SG lags behind, then hits as a lump — cash dips right before supplier runs. A clean bridge stops “statement wobble”.

Decision clarity

If SG + payroll weeks are compressing your cashflow, your “finance fix” should match the pattern: rolling gaps often suit a Business Line of Credit, while planned bridging can suit Working Capital Loans.

Start here: Business Line of Credit or Working Capital Loans. If you’re running invoice-heavy work, Invoice Finance can stabilise timing once invoices are issued: Invoice Finance. For asset purchases, keep it separate under Low Doc Asset Finance.

Related term: BAS (Business Activity Statement).

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SG FAQs
Is SG part of wages?

It’s separate to take-home pay, but it’s still a real payroll cost the business must fund.

Why do lenders care about SG?

Because consistent payroll obligations signal stability. Gaps or irregular patterns can read as working-capital pressure.

Can I use business finance to smooth payroll-heavy weeks?

Yes, if it’s structured to match timing. A clean facility can reduce statement volatility versus last-minute patches.

Does SG matter if I’m a sole trader?

SG mainly applies to employees. If you don’t have staff, it’s usually not a driver — but payroll and staffing changes can bring it in quickly.

This glossary page is general information only and doesn’t consider your objectives or financial situation.