It’s a big week for anyone carrying business debt. The Reserve Bank lifted the cash rate to 4.60% on 29 September, its fourth increase this year and the highest level since 2011. The next decision is due at 2:30pm on Tuesday 3 November (yes, Melbourne Cup day), and the latest inflation figures from the ABS land this Wednesday, 28 October.
When economists were surveyed in September, most expected rates to stay at 4.60% for the rest of the year, but a minority tipped another rise. Either way, rates aren’t coming down any time soon, so it pays to plan for them staying high.
Five cash flow checks worth doing this week
- Stress-test your repayments. Work out what another 0.25% would add to your business loan, overdraft and equipment finance each month.
- Chase what you’re owed. Every invoice paid on time is money you don’t have to borrow.
- Set tax money aside. A separate account for GST, PAYG and super stops the ATO becoming your most expensive lender.
- Talk to your lender early. Ask about fixing part of your debt or restructuring repayments before you need to.
- Build a 13-week cash flow forecast. It’s the simplest way to see a squeeze coming months ahead rather than days.
A reminder that interest on business loans is generally deductible, but interest the ATO charges on tax debts no longer is, so an ATO debt is now one of the costliest ways to fund your business.
Want help putting a cash flow forecast together? Give our Dee Why team a call or drop in.
This is general information only and not personal advice. Sources: RBA monetary policy decisions; ABS release calendar, October 2026.
