Every year it catches someone out. December is flat out trying to get jobs to lock-up before the break, the team gets their holiday pay, and then the phone goes quiet for three or four weeks. Meanwhile the claims you sent in mid December sit in someone’s inbox until they’re back from the beach. Here’s how to plan the Christmas shutdown so you start the new year with money in the bank.
Key takeaways
- The shutdown gap is four to eight weeks of reduced income for many tradies, not two.
- Plan from October: get jobs to claimable stages and invoice before 15 December.
- Since 1 July 2026, payday super means super is due within 7 business days of each payday, including holiday pay runs.
- The October to December quarterly BAS is due 28 February, right when cash is often at its lowest.
- If there’s a gap, arrange funding before the break, because valuers, lenders and solicitors slow down too.
Why does the Christmas shutdown hit cash flow so hard?
It’s a timing problem. Money going out doesn’t stop, but money coming in does.
Going out:
- December wages plus annual leave and leave loading for your team
- Super, now due within 7 business days of each payday under the ATO’s payday super rules, which started on 1 July 2026
- Supplier accounts for the big pre Christmas materials push
- Vehicle, equipment and insurance repayments
- The October to December quarterly BAS, due 28 February
Coming in (slowly):
- Progress claims submitted in mid to late December
- Retention releases that everyone forgets about until February
- Invoices to homeowners who’ve just spent up on Christmas
The result is often a cash low point in mid to late January, just as you need to restart jobs, buy materials and pay the team for the first fortnight back.
How do security of payment deadlines work over the holidays?
Security of payment laws give you set timeframes to get a payment schedule and be paid, but the holiday period can stretch them. For example, the Queensland Building and Construction Commission says the period from 22 December to 10 January doesn’t count as business days for security of payment purposes. A claim served on 18 December can have its deadlines pushed well into January.
Other states have their own rules, so check with your state building authority or get advice for your state. Our guide to security of payment claims and cash flow covers the basics.
Your Christmas cash flow plan: October to February
October: set up the run home
- List every job and the next claimable stage.
- Work out which stages you can realistically reach by early December.
- Talk to clients and head contractors about their shutdown dates and when their last payment run is.
- Check supplier cut off dates and when their accounts are due.
November: build the cash flow calendar
- Write down every payment due from 1 December to 28 February, with dates and amounts.
- Write down every expected receipt, with a realistic date (assume late, not on time).
- Find the lowest point. That’s the number you need to cover.
- If there’s a gap, check your options now, not in the last week before Christmas.
December: claim early, pay smart
- Submit claims as soon as each stage is reached, ideally before 15 December.
- Follow up every claim by phone before the client’s last payment run.
- Chase retention that’s due for release.
- Pay holiday wages and super on time. Late super under payday super rules can bring extra charges from the ATO.
January: restart strong
- Follow up every outstanding claim in the first week back.
- Order materials for the first month so jobs restart on day one.
- Put money aside for the February BAS as claims come in.
Example: an electrician with four staff
Example (hypothetical): A Perth electrical contractor with four employees pays roughly $60,000 in wages, leave and super between mid December and the end of January. His last big claims, around $90,000, go in on 12 December but the head contractor’s accounts team is closed from 20 December to 12 January, so the money lands in late January. He also has a supplier account due in early January.
He takes a $70,000 unsecured cash flow loan for tradies in early December, pays the team and supplier on time, and repays it when the claims land. His trade account stays open and he starts January without chasing favours.
What funding options work for the shutdown gap?
| Option | Best for | Key requirement |
|---|---|---|
| Unsecured cash flow loan | Wages, super and supplier bills for a few weeks | 6+ months trading with an ABN, recent business bank statements |
| Second mortgage | Larger gaps, several months of costs | Equity in property you or a guarantor already own |
| Working capital loan | Businesses with several jobs restarting at once | Unsecured or property secured |
| ATO debt loan | Clearing a BAS or tax bill due in February | Unsecured or property secured |
If your problem is a tax bill that’s already overdue, see ATO debt loans for tradies. If it’s a general working capital squeeze across several jobs, see working capital for construction companies.
Why apply before the break?
Property secured loans can fund in as little as 24 hours in some cases, but they usually need a valuation and a few documents. Over Christmas, valuers, solicitors and settlement teams run on skeleton staff. If you know there’s a gap coming, get the application in during November or early December so the money is sitting there when you need it.
Unsecured loans are quicker, with some approved and funded within hours, but you still want the approval sorted before your bank statements show the December dip.
Key facts
- Loan size: $20,000 to $5 million, for business purposes
- Unsecured: 6+ months trading with an ABN, sized to turnover
- Property secured: existing home, investment, commercial property or land with equity; no financials needed; bad credit considered
- Speed: some unsecured loans fund within hours; property secured in as little as 24 hours in some cases
- Term: property secured loans typically 1 to 12 months
Christmas shutdown checklist
- Shutdown dates confirmed with clients, head contractors and suppliers
- Every claimable stage invoiced before mid December
- Cash flow calendar from December to February written down
- Holiday wages, leave and super budgeted
- BAS money set aside for 28 February
- Funding arranged before the break if there’s a gap
Get the plan right and you can actually enjoy the break. If the numbers show a gap, start your application today. It takes 60 seconds, won’t affect your credit score, and we’ll tell you quickly if we can help.
