NSW Small Businesses Endure July Cash Squeeze as Payroll Tax Plan Targets 4,000 Firms
Updated
Updated · SmartCompany · Aug 7
NSW Small Businesses Endure July Cash Squeeze as Payroll Tax Plan Targets 4,000 Firms
1 articles · Updated · SmartCompany · Aug 7
Summary
July 2026 became one of the toughest months in recent memory for NSW small businesses, with owners facing a sharp cash-flow squeeze rather than an outright collapse in customer numbers.
Higher wages, payday super, quarterly BAS and super payments all hit at the start of the new financial year, while weaker consumer spending left less money coming in to cover bills.
Cafes and restaurants still looked busy, but spending per customer fell as tradies skipped breakfast, diners shared meals and chose cheaper drinks, cutting profit per table.
Fuel surcharges across supply chains added another layer of pressure, forcing some businesses to borrow or dip into next month’s cash flow just to pay wages and suppliers.
Gurmesh Singh used the summit to pitch a Nationals plan to lift the NSW payroll tax threshold to $1.5 million from $1.2 million, a change he said would remove about 4,000 firms from the tax.