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The tradie cash flow survival guide

BUSINESS TIPS

The tradie cash flow survival guide

How to keep money in the business when fuel, tax and payroll are all squeezing at once — the five cash flow killers and the fix for each.

Monique Yukich. 6 min read

Published: 15 June 2026

BUSINESS TIPS

The tradie cash flow survival guide

How to keep money in the business when fuel, tax and payroll are all squeezing at once — the five cash flow killers and the fix for each.

Monique Yukich. 6 min read

Published: 15 June 2026

Key Takeaways

Profit is what's left at the end of the year. Cash flow is whether you can make payroll this Friday.
Take a deposit on every job with materials, and shorten invoice terms to 7–14 days.
Aim for 30–60 days of operating costs in reserve — start with one week and build from there.

Why cash flow is getting harder in 2026

If you employ anyone — even one apprentice — the way you pay super has changed. In plain English:

Super is now due every payday. From 1 July 2026, super must reach your workers' funds within 7 business days of every pay run — not quarterly. The quarterly buffer many businesses leaned on is gone.
The ATO is chasing tax debt harder. Payment plans are tighter and enforcement is faster than it was a few years ago.
Fuel and materials keep climbing. Costs go up between quote and completion, and most tradies wear the difference.
Customers are paying slower. When money is tight everywhere, your invoice slides down their pile.

30–60 days

of operating costs in reserve is the buffer that keeps a slow month from becoming a crisis

The one-line takeaway

Profit is what's left at the end of the year. Cash flow is whether you can make payroll this Friday. You need to manage both — and they're not the same thing.

The 5 cash flow killers (and the fix for each)

Doing the work before taking a deposit
Materials paid out of your pocket, weeks before you see a cent. Fix: take a deposit on every job that involves materials. 10–30% upfront is standard. If a customer won't pay a deposit, that tells you something about how they'll pay the final invoice.
30-day terms that turn into 60
Big builders and commercial clients stretch terms because they can. Fix: invoice the day the job finishes, not at month end. Set 7–14 day terms on your invoices. Follow up the day after due — politely, every time. The squeaky wheel gets paid first.Extra penalties of 25% to 50% of the unpaid charge can apply for repeat late payers — up to 200% in the worst cases.
One bank account for everything
GST, tax and super money looks like spending money when it's all in one pile. Fix: open a second account and move a set percentage of every payment into it the day it lands. That money was never yours — quarantine it so BAS day is boring, not terrifying.
No buffer between jobs
One rained-out fortnight or one slow payer and the wheels wobble. Fix: build towards 30–60 days of operating costs in reserve. You won't get there overnight — start with one week and add to it every month.
Paying cash for big gear
Draining $60k of working capital into a ute or machine can starve the business that the machine was meant to grow. Fix: for income-producing assets, finance structured over the working life of the asset can let the asset pay for itself while your cash stays in the business. Whether that stacks up depends on your numbers — it's worth doing the maths before writing the cheque.

Your 30-day quick wins checklist

Add deposits to your quote template (10–30% on jobs with materials).
Change invoice terms to 7 or 14 days and invoice same-day on completion.
Open a separate account for GST, tax and super — and set the transfer percentage with your accountant.
Chase every overdue invoice — a same-day reminder, then a phone call at 7 days.
List your next 3 months of big outgoings (rego, insurance, BAS, gear) so nothing ambushes you.
Work out your weekly operating cost — that number tells you what a real buffer looks like.
Review any loans or facilities you already have — do the repayments still match how the business earns?

Where finance fits (and where it doesn't)

Working capital finance, invoice finance and equipment finance are tools — used well, they smooth the gap between doing the work and getting paid. Used badly, they paper over a pricing or collections problem and make it worse. The right structure depends on your situation, and that's a conversation, not a product pitch.