PromoWhat Australia’s New Payment Rules Mean for Small Business Cash Flow
Australia’s new card payment rules are changing how some suppliers accept payment. Explore four practical ways small businesses can maintain visibility, flexibility and control over cash flow.
For many Australian small businesses, managing cash flow is a constant balancing act. Rising costs and tighter margins mean knowing when money comes in and goes out has never been more important.
The card surcharge reforms introduced by the RBA on 1 October have added another consideration. While the initial discussion focused on consumers at the checkout, attention has now turned to business payment options and cash flow.
On 9 October, the government delayed the ATO’s planned withdrawal of credit card payments until 30 June 2027 following small business concerns. That provides breathing room for tax payments, but the broader surcharge reforms remain in place.
It’s clearly a topic business owners want answers on. According to Google Trends, Australian search interest for “RBA surcharge” increased by more than 5,000% over the past three months compared with the preceding three months.
The timing is significant. The Reserve Bank’s October Financial Stability Review found that while most businesses remain resilient, insolvencies remain elevated in hospitality and construction, particularly among smaller businesses.
Against that backdrop, even small changes to supplier payments can matter. Some suppliers are reviewing the payment methods they offer. Understanding the flow-on effects can potentially help your business avoid surprises and stay in control of cash flow.
Here are 4 key considerations:
1. Check how your suppliers now accept payment
Not every supplier will respond to payment changes in the same way.
Some may continue accepting card payments as they always have. Others may move customers to bank transfer, direct debit or third-party payment platforms. While these changes may seem minor, they can affect how quickly invoices are paid, how payments are tracked and the amount of administration required.
Taking stock of how your regular suppliers now accept payment can help ensure your finance processes continue running smoothly and avoid unexpected disruptions.
The ATO extension gives businesses more time on tax payments, but it’s still worth checking whether individual suppliers are changing their arrangements.
2. Know exactly when money leaves your business
Cash flow is about more than what you spend. It’s about when you spend it.
If a supplier changes payment methods or introduces a third-party payment process, it may affect settlement times, payment deadlines or when funds leave your account. Across multiple suppliers, those changes can quickly add complexity.
Maintaining visibility over payment timing can help businesses forecast more accurately, avoid late payments and make more confident decisions about working capital.
3. Use payment terms to protect cash flow
For businesses operating vehicles, fuel is often one of the largest ongoing expenses, accounting for around 30% of total fleet costs.
Interest in fuel cards is also growing. According to Google Trends, Australian search interest for “fuel cards” increased by more than 60% year-on-year, suggesting businesses are exploring ways to manage their expenses and payment options.
Payment terms can play an important role. Solutions that provide an interest-free payment period can help bridge the gap between operational expenses and payment obligations, giving businesses valuable breathing room when managing day-to-day cash flow.
For example, FleetCard offers eligible customers up to 51 days interest-free, helping businesses manage fuel expenses while maintaining greater financial flexibility.
4. Keep payments simple
As businesses grow, so does the complexity of managing suppliers, invoices and payment methods.
When payment processes change across multiple suppliers, administration can quickly increase. That means more invoices to track, more payment dates to manage and more opportunities for something to be missed.
Consolidating vehicle-related expenses into a single account and receiving one monthly tax invoice can reduce administrative burden, improve visibility over costs and simplify reconciliation.
For businesses using Xero, FleetCard’s Xero integration can further reduce manual administration by allowing vehicle expenses to flow automatically into Xero. Combined with a consolidated monthly ATO-compliant tax invoice and reporting, this can make reconciliation quicker and costs easier to track.
FleetCard’s spend controls can also help businesses set clear parameters around card use, supporting better oversight of vehicle-related costs before they reach the reconciliation stage.
Why payment flexibility still matters
As supplier payment options evolve, flexibility remains important for small businesses.
Business owners need payment options that fit the way they manage cash flow, not solutions that add unnecessary complexity, additional processing steps or delays.
That’s why FleetCard continues to offer customers the ability to pay by credit card, without surcharge fees or separate third-party processing fees.
Ultimately, the goal is to give businesses greater control over their expenses, without adding unnecessary complexity to how they pay.
The bottom line
The ATO’s delayed withdrawal of credit card payments has highlighted how important payment flexibility is to small business cash flow. While the extension provides breathing room for tax payments, businesses still need to understand what is changing across their suppliers.
Changes to supplier payment methods can affect administration, payment timing, visibility and ultimately cash flow. At a time when many businesses are already managing cost pressures and tighter margins, those details matter.
By understanding how suppliers are adapting, maintaining visibility over payment timing and making the most of flexible payment options, businesses can put themselves in a stronger position to manage whatever comes next.
Because when cash flow is one of your most valuable assets, every payment decision counts.
Keen to know more? Get in touch to find out how FleetCard can help improve cash flow in your business.
A FleetCard to suit every business
Save time and money with acceptance at over 95% of fuel sites across Australia.
Enquire now
“Excellent service! Website is user friendly and queries are responded to timely.”
Ryan — Buildmat
