Insights · Cash flow ·
The cash rate is 4.60%: a cash flow plan for small business
The Reserve Bank lifted the cash rate target to 4.60% from 30 September 2026, the fourth rise this year, and said it may raise again if needed. If your business carries debt, now is the time to stress-test.
Five steps this month
- List every variable-rate facility: overdrafts, business loans, equipment finance, credit cards. Note the rate and the repayment.
- Stress-test repayments at your current rate plus 0.5 and 1 percentage point. Can the business carry that from cash flow?
- Run a 13-week cash flow forecast so a tight month shows up early.
- Tighten debtors: shorter terms, deposits and progress claims reduce how much you need to borrow.
- Talk to your lender early if the numbers are tight. See getting lender ready.
Do not forget the ATO
Higher interest costs often squeeze the money set aside for GST and PAYG. Keep tax money separate: how much tax to set aside, and if you are behind, what to do if you owe the ATO.
Quick answers
What is the RBA cash rate now?
4.60%, effective 30 September 2026. The next decision is due on 3 November 2026.
How should a small business respond to a rate rise?
Stress-test loan repayments, run a 13-week cash flow forecast, tighten debtor terms and talk to your lender early if cash is tight.
Sources
General information only. This article does not take into account your circumstances and is not tax, legal or financial advice. Rates and rules change; check the sources above and get advice for your business before acting.
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