I heard from several Queensland newsagents yesterday saying they would close as a result of the change in the bank account sweep by Tatts which took effect yesterday. Pretty dramatic stuff for what at first glance appears to be a simple payment day change.
The timing of the change appears to be the issue: a drawdown by Tatts Friday and again today, a super and tax hit this month, magazine accounts due this week and other suppliers chasing money more aggressively.
Given the timing of cash hits in August, Tatts would have been better advised make the change next month and maybe in a more phased way.
The next few days will show if the concerns of some has followed through with business closures.