Quick answer
For many cafés, restaurants, bars and shops, Christmas is the biggest trading period of the year, but its costs arrive first: extra stock, casual staff, longer hours and decorations. The cash then has to stretch through the quieter weeks that follow and a quarterly BAS due on 28 February. A line of credit or short-term facility, drawn before the rush and repaid from it, is a common way to bridge the gap.
Key points
- Stock and staff for December are paid for in October and November.
- Some venues get busier; CBD cafés can get quieter when offices close.
- The October to December BAS is due 28 February for quarterly lodgers.
- Arrange funding while your statements look strong, not in the rush.
- Quarterly BAS (Oct–Dec)
- Due 28 February
- Super
- Paid with each pay run (Payday Super)
- Line of credit
- Typically $5k – $500k
- To enquire
- No credit check
December is a strange month in hospitality and retail. For a gift shop, a bottle shop or a restaurant with a function room, it can deliver a large slice of the year’s takings. For a CBD café whose office crowd disappears on holiday, it can be one of the quietest stretches of the year. For almost everyone, though, the cash story is the same: Christmas costs arrive before Christmas revenue, and the bills keep coming after the tinsel comes down.
Who gets busy, and who gets quiet?
| Business | Typical December pattern |
|---|---|
| Gift, homewares and fashion shops | Strong lift through November and December |
| Bottle shops | Among the busiest weeks of the year |
| Restaurants and bars with function space | Busy with work parties and group bookings |
| Beachside and holiday-town cafés | Busy from mid-December into January |
| CBD cafés | Often quiet when offices close |
| Florists | Busy, with Christmas orders and events |
| Bakeries | Busy with Christmas cakes, puddings and catering |
These are general patterns, not rules. The best guide is your own history: last year’s takings, week by week. Our seasonal trade planner lets you shape each month to match your business and see where cash runs thin.
The Christmas cash timeline
For a business that booms in December, the cash moves roughly like this:
- September and October: order Christmas stock, confirm function bookings, recruit casuals.
- October and November: stock invoices fall due; training shifts start; decorations and marketing.
- December: peak trading, peak wages, penalty rates on public holidays.
- January: trading eases for many; some staff leave; December’s supplier bills are paid.
- 28 February: the quarterly BAS covering October to December is due, according to the ATO, and a strong December means a bigger GST bill.
The pinch points are late spring, before the rush pays, and late summer, when the BAS lands in a quieter month.
Funding stock and staff for the rush
For retailers, stock is usually the biggest pre-Christmas cost. Our page on retail stock finance covers sizing and timing a stock buy. For venues, it’s staff: extra casuals, longer rosters and public holiday penalty rates. Our page on public holiday trading looks at planning those costs.
Since 1 July 2026, Payday Super means super is paid with each pay run, with contributions generally due to reach funds within seven business days of payday, according to the ATO. That removes the old quarterly super bill, but it means your biggest wage weeks in December now carry their super immediately.
A line of credit, typically $5,000 to $500,000 for trading businesses and sized on turnover and bank statements, often suits this pattern: drawn in October and November, repaid through December and January. You can see what your business could access without a credit check.
Avoiding the February hangover
The quiet weeks after Christmas are where many venues and shops come unstuck. A few habits help:
- Set aside GST as you collect it. A separate account for GST and PAYG withholding keeps the February BAS from being a surprise.
- Pay down the facility from December takings, rather than waiting until January when trade slows.
- Plan January rosters early, especially if you’re a CBD café facing a slow month.
- Don’t overbuy. Unsold Christmas stock in January ties up cash and ends up marked down.
If you’re a café that goes quiet over the break, our page on getting through a café’s quiet months has more.
An illustrative example
Illustrative only. A gift and homewares shop does a large share of its year between mid-November and Christmas Eve. The owner orders stock in August for September and October delivery, hires three casuals for December and extends trading hours. A line of credit sized on turnover is drawn as stock invoices fall due and reduced week by week through December. By mid-January it’s close to zero, and the owner has set aside the GST collected over the quarter in a separate account, ready for the February BAS.
Planning for the functions season
Restaurants and bars that take work Christmas parties often collect deposits in advance, which helps cash flow, but they also need extra staff, stock and sometimes hired equipment. Confirm deposits and final numbers early, and make sure your function pricing covers penalty rates if events fall on weekends or public holidays.
A Christmas checklist
- Compare last year’s December takings with the rest of the year.
- Place stock orders early enough to get delivery before the rush.
- Arrange any funding before invoices fall due.
- Budget casual wages including super and penalty rates.
- Open a separate account for GST collected over the quarter.
- Plan January rosters and stock levels.
Get ready for the rush
If you want your shelves full and your rosters staffed before the busiest weeks of the year, start with a short enquiry. It takes around a minute and there’s no credit check when you first enquire. We won’t broadcast your details to a queue of lenders; a real person who understands seasonal hospitality and retail looks at your trading pattern and calls you with options that fit. Please fill in the form accurately, especially the amount and your busiest months, so we can match you properly first time.
Frequently asked questions
When should a shop arrange funding for Christmas stock?
Before you place your orders, which for many retailers is well before spring ends. Arranging a facility early, while your bank statements show steady trading, is far easier than scrambling when invoices land in November.
Is Christmas busy for every hospitality business?
No. Restaurants, bars and venues near shopping and holiday areas often boom, while CBD cafés can go quiet when offices close over the break. Map your own pattern before you plan.
What's the February BAS pinch?
For quarterly lodgers, the BAS covering October to December is due on 28 February, according to the ATO. Strong December sales mean more GST to pay, and it falls due in what's often a quieter month.
Can I borrow to cover Christmas casual wages?
Yes. Wages for extra staff ahead of and during the peak are a legitimate business expense to fund. Since 1 July 2026, super is paid with each pay run under Payday Super, so include it in the wage figure.
Should I use a loan or a line of credit for the Christmas period?
A line of credit usually suits seasonal peaks better, because you draw what you need and repay as takings come in. A short-term loan can suit a single large stock purchase with a clear repayment date.