If December–January always squeezes your cash, you’re not alone. Trades slow, clients disappear, suppliers shut, and wages still run. The fix isn’t a heroic overdraft. It’s a simple plan you execute now: lock in payment terms, accelerate invoicing, tighten debtors, and map the statutory due dates that land in January and February. This guide shows the steps we use with trade clients in Cairns and the Sunshine Coast.
Quick note: All facts link to Australian regulators and government sources so you can rely on them.
Outline
Why Christmas crunches cash for trades
Non-negotiable dates you must plan for (BAS, super)
Your debtors playbook (templates and sequence)
Pricing and payment terms to use now
Scheduling, shutdowns and staffing
A 6-week Christmas cash flow checklist
When to get help
Why Christmas crunches cash for trades
Work slows while wages, rent and repayments roll on. Many clients pay late in December and don’t resurface until mid-January, so inflows lag outflows. A simple weekly forecast that maps timing of receipts and payments is your best defence, and a free template is available from business.gov.au at their cash flow statement page.
The ATO also stresses that managing cash means ensuring you have enough at the right time to meet tax, super and employer obligations, which is exactly why forward planning for December–January matters. ATO cash flow guidance.
Non-negotiable dates you must plan for
Two dates catch trade businesses every year:
Quarterly BAS for October–December: the ATO’s BAS due-dates page shows the Quarter 2 BAS falls in late February, so include it in your cash plan now.
Super Guarantee (October–December) is due 28 January: contributions must be received by the fund by the quarterly due date to avoid the super guarantee charge.
Handy schedule (add to your planner):
| Obligation | Period covered | Due date | Tip |
|---|---|---|---|
| Super Guarantee | Oct–Dec | 28 January | Allow clearing time so funds receive it before the date. |
| BAS (Quarterly) | Oct–Dec | Late February (check your lodgement pathway) | If lodging via agent, confirm your exact date. |
Your debtors playbook (what to do, in order)
Christmas is won or lost in your receivables. Use this simple sequence.
Set clear payment terms before the job. Payment terms are part of your sales contract and should spell out accepted methods, due dates, any credit, and your debt collection process.
Take deposits and progress claims. Progress billing smooths cash and reduces exposure to December blow-outs. If you deal with large enterprise customers, check their actual payment timeliness using the federal Payment Times Reporting Register before you agree on credit see Payment Times scheme overview (Treasury).
Invoice immediately at milestones. Don’t wait for “end of month.” Use your accounting system to invoice at each stage and keep work-in-progress low. A practical government template can help you plan the timing of claims (see link for Business.gov.au for Cash flow template.)
Automate reminders and make it easy to pay. Schedule reminders (for example: 3 days before due, on due date, 3, 7, 14 days overdue) and offer card/online options so customers can pay on the spot. The ATO notes that active attention to accounts and payments via Online services helps keep obligations on track.
Escalate firmly, lawfully. When an account slips from “late” to “collection,” follow the joint ACCC/ASIC Debt collection guideline so your team doesn’t cross the line on contact frequency, harassment, privacy or dispute handling. Debt collection guideline (ACCC/ASIC).
Know your options if payment still doesn’t arrive. Queensland provides practical guidance on protecting your business from bad debts and resolving disputes, including links to support services. Queensland Government – dealing with debtors see Fair Work Ombudsman
If the debtor is a large enterprise, check the register’s latest data before granting further credit. The regulator has released an improved public register to compare payment behaviours across big buyers paymenttimes.gov.au.
Suggested reminder/escalation sequence
T-3 days: Friendly reminder with link to pay now.
Due date: Short nudge that goods/services have been delivered and payment is due.
+3 days: First overdue notice stating late fees or interest if applicable (must be pre-agreed in your terms).
+7 days: Phone call plus written notice that the account will be referred to collections if unpaid by a specific date.
+14 days: Final demand and, if unresolved, referral under your documented process.
Pricing and payment terms to use now
Shorten default terms for December jobs. Move from 30 days EOM to 7–14 days from invoice for pre-Christmas work, documented in the quote and acceptance. Payment terms (business.gov.au).
Build late fees correctly. If you charge interest or admin fees on overdue accounts, they must be agreed upfront and be a reasonable pre-estimate of loss, not a penalty. Payment terms overview.
Scheduling, shutdowns and staffing
If you plan a Christmas shutdown, you can only direct employees to take annual leave during a shutdown where the relevant award or registered agreement allows it, and you must give proper notice. Fair Work – shutdown and annual leave.
Cash impact: line up deposits and progress claims so more cash lands before shutdown, and roster skeleton crews for urgent call-outs with higher call-out rates pre-agreed in writing. Use the government cash flow template to model those weeks explicitly.
A 6-week Christmas cash flow checklist
Week 1 (now):
Re-forecast Dec–Feb with weekly inflows/outflows using the free template.
Insert these statutory dates: 28 Jan super and late Feb BAS based on your lodgement pathway.
Week 2:
Shorten terms on all December quotes and require deposits on booking.
Identify top 20 debtors; set reminder schedule and escalation dates that follow the ACCC/ASIC guideline.
Week 3:
Bring forward milestone invoices on jobs likely to straddle Christmas.
If a customer is a large enterprise, review their reported payment times on the government register and adjust terms accordingly.
Week 4:
Confirm shutdown dates, notice and leave directions under your award.
Schedule super contributions with your clearing house to land before 28 Jan (allow clearing time).
Week 5:
Run a pre-shutdown debtor blitz: same-day statements, call all accounts due in the next 14 days, and offer card/online options for immediate payment.
If a client signals hardship, agree a short, written plan that stays within the ACCC/ASIC rules.
Week 6 (shutdown week):
Issue final pre-Christmas invoices and schedule auto-reminders over the break.
Recon January cash needs against expected receipts; if there’s a gap, line up cuts or a payment plan before you reopen using ATO Online services.
When to get help
If BAS, PAYG or super are drifting, talk to your advisor early and, if needed, set up an ATO payment plan inside Online services for business. ATO payment plans.
Queensland businesses can access free small-business financial counsellors for cash-flow pressure or debt problems via the state’s support services. Business Queensland – financial counsellors.
Not advice
This article is general information for Australian small businesses. Get advice for your situation and always check the current ATO and Fair Work pages for dates and rules.
Want hands-on cash plan before the break? Book time with our team. Book a 15-minute strategy call.
Talk to our Cairns or Sunshine Coast about how we help small trade based business owners manages their cash flow.
Want proof it works in the real world? Browse our trade business case studies. Who We’ve Helped.
FAQ
What should my standard payment terms be in December?
Shorter is safer: move to 7–14 days from invoice for pre-Christmas work and require deposits, documented in your quote and contract. Payment terms (business.gov.au).
Can I charge late fees on overdue invoices?
Yes, if the clause is agreed upfront and the amount is reasonable (a genuine pre-estimate of loss), not a penalty. Payment terms guidance.
When is super due after Christmas?
Super for the October–December quarter must be received by the fund by 28 January (or next business day if that date is a public holiday or weekend). ATO super due dates.
Do we have to pay staff during a shutdown?
You can only direct annual leave during a shutdown if the award or agreement allows it, and you must give proper notice. Fair Work – shutdown rules.
What if I can’t pay BAS on time because December was slow?
Contact your advisor immediately and consider a payment plan through ATO Online services to avoid harsher action.