Can't pay wages this week? What to do tonight
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If payroll is due and the money is not there, the first job is knowing exactly how short the business is and by when. Call the accountant first thing. Stop taking on new debt until it is clear whether the company can pay its bills as they fall due. If it cannot, it may be insolvent, and directors can be personally liable for debts incurred while trading insolvent.
Tonight, with a notepad
Check the bank balance today and the money coming in before payday, counting only invoices that are confident to be paid. Add up wages, PAYG withholding and super due this week. The gap between the two is the number that matters. List what is already overdue: ATO, super, suppliers, loans. ASIC lists these as warning signs of financial difficulty.
Tomorrow morning
Call the accountant with the number and the list. Ring the biggest debtors and ask for payment this week. If tax is behind, contact the ATO before the due date. A payment plan accrues interest (GIC, compounding daily), and future lodgements and payments need to stay current or the plan defaults. Tell staff the truth if pay will be late, and check the Fair Work rules that apply.
What to avoid
Skipping the super or PAYG to make the wages balance is a common mistake. Unpaid super and PAYG are exactly what a director penalty notice can make personal. A high-interest short-term loan to get through one payroll carries the same risk: if the hole comes back next fortnight, the loan only made it deeper. ASIC warns about quick fixes that push urgent new finance or moving assets to another company.
If this keeps happening
One bad week can be timing. Every fortnight being a struggle is a sign the business model, pricing or debt load is the problem. A registered liquidator can do a solvency review and lay out options, including restructuring or refinancing. For eligible small companies, small business restructuring is one formal path, available where liabilities are up to $1 million. Ask a professional whether it fits.
Questions people ask
Can I pay wages before the ATO?
Wages, super and PAYG all carry director risk. Get advice before choosing who to pay.
What happens to staff if the company fails?
Employees may claim unpaid entitlements through the Fair Entitlements Guarantee if the company goes into liquidation.
Am I trading insolvent?
If the company cannot pay debts as they fall due, it may be. Get a solvency opinion this week.
Sources
ASIC, Experiencing financial difficulty, ASIC, What to do if your company is insolvent, ATO, Payment plans, ASIC, Small business restructuring, Fair Entitlements Guarantee. Checked 21 October 2026.
Formal notice? Call 0489 080 360 and contact your qualified adviser promptly.
Written by Mike Haydon. Reviewed by [PLACEHOLDER: registered liquidator or lawyer, registration number, date].