For many business owners in the construction industry, cash flow problems can creep up as everyday Aussies begin to switch off and Christmas approaches.
Sites close, payments slow down, and payroll costs rise to cover annual leave and public holidays. It’s no surprise that many builders feel stretched in January. But taking a few smart steps now can help you avoid running short on cash during the holidays.
Here are some ways to keep your construction business’s cash flow steady during the Christmas and New Year break.
Step 1: Invoice & Follow up Debtors Before You “Down Tools”
If you wait until January to send invoices for December work, you’ll end up behind.
Start by checking what you can invoice now, even if the job isn’t 100% complete. Use progress claims, staged invoices, and deposits for January work to bring in cash sooner.
For example, a mid-sized construction business finishing a project could send a 70% progress claim before the break, with the last 30% due when work starts again. This can balance cash flow when payments would otherwise slow down.
Tip: Review your payment terms. If you send an invoice in mid-December with 30-day terms, you might not get paid until late January at best.
Step 2: Map Out Payroll, Leave, and Public Holiday Costs
Payroll doesn’t stop just because your crew is on holiday. December and January can be your most expensive months for pay runs.
Make sure you’ve accounted for:
- Leave loading: Full-time and part-time employees may be entitled to a 17.5% loading on top of their base pay when they take annual leave. Check their award, enterprise agreement, or employment contract.
- Public holiday entitlements: Employees who would normally work on a public holiday (like Christmas Day or Boxing Day) are entitled to be paid even if your site is closed.
- Cash flow timing: This is especially important if your shutdown covers more than one pay cycle.
If you close over Christmas, check whether your final pay run falls on a public holiday, as this could delay processing. This is especially true if you use external bookkeepers or need banking approvals.
Step 3: Plan Now for the December BAS Payment
The Q2 BAS deadline on 28 February may seem far away, but it covers income and expenses from October to December.
Your December spending on wages, materials, and contractor invoices will be included in that return. Remember, not every dollar in your account is yours to keep. If you spend the GST and PAYG you were supposed to save, you’ll be caught short when the deadline arrives.
Ask your accountant or bookkeeper to help you estimate what’s coming up and when you should set cash aside.
Your Quick Cash Flow Checklist
Before you log off, check:
- Have I invoiced everything I can before shutdown?
- Do I have sufficient cash flow to cover leave, super, and payroll through January?
- Have I forecast my BAS position?
- Are there any quotes I can turn into deposits or staged invoices?
Don’t Let a Break Break Your Construction Cash Flow
Construction cash flow is always a balancing act, especially during the holiday season. Plan ahead now so you can start 2026 strong instead of rushing to catch up.
At Growth iQ, we help construction business owners take control of their numbers, so they can focus on the job site.
If you need to plan your Christmas and New Year break finances, we’re ready to help. Book your free discovery call today with our tradie accountants and take a step towards better cash flow control.