In 2025, ‘working control’ is more than a buzzword—it’s a game changer for Australian businesses wrestling with tighter cash flows, evolving lending standards, and a shifting compliance landscape. But what does ‘working control’ mean, and how can your business use it to thrive?
What is Working Control? Why It Matters Now
Working control refers to a business’s ability to directly manage, access, and make decisions over its operational assets and finances—especially those tied to day-to-day cash flow and lending arrangements. In practical terms, it’s the difference between running your business on your own terms or being at the mercy of lenders, suppliers, or regulatory red tape.
In the context of 2025, working control is under the spotlight thanks to several key trends:
- RBA’s digital payments reforms: The Reserve Bank of Australia’s ongoing push for real-time payments and open banking means businesses must have a tighter grip on their accounts and cash movement than ever before.
- Stricter lending criteria: Major banks and non-bank lenders have raised the bar for SME loans, demanding clearer evidence of asset control and cash flow management.
- ATO compliance crackdowns: The Australian Taxation Office is using new data-matching powers to scrutinise business finances, making robust working control essential for avoiding costly mistakes.
How Working Control Impacts Cash Flow and Lending
Think of working control as the linchpin in your business’s financial engine. If you can’t prove who’s in charge of your working capital, lenders get nervous—and cash flow bottlenecks become inevitable.
Here’s how working control plays out in real-world scenarios:
- Asset finance and invoice factoring: Lenders are increasingly requiring businesses to show they have real working control over the assets or receivables being financed. For example, if you’re using invoice finance, you’ll need to demonstrate that you manage the invoicing process, own the debtor relationships, and can enforce payment terms independently.
- Business overdrafts and lines of credit: Banks may demand evidence of working control over the accounts being used as security. This could involve having sole signatory rights or exclusive access to the business’s trading accounts.
- Cash flow forecasting: Accurate projections depend on knowing precisely when and how you can access funds. If suppliers, customers, or lenders have too much say over your operating capital, forecasting becomes guesswork.
Case in point: In 2025, a mid-sized Melbourne construction firm secured a $2.5 million working capital loan after restructuring their accounts and demonstrating clear working control over both their equipment and project receivables—a move that previously would have been bogged down by administrative uncertainty.
Strengthening Working Control: Practical Strategies for 2025
Want to shore up your business’s working control? Here’s how smart Aussie firms are leading the way in 2025:
- Centralise payments and receivables: Use digital banking platforms and payment gateways that let you monitor and direct all inflows and outflows in real time. Tools like PayTo and API-enabled business accounts are now essential for instant oversight.
- Formalise internal controls: Document signatory rights, cash handling policies, and asset management protocols. Lenders and auditors increasingly ask for this paperwork as part of loan approvals or compliance checks.
- Integrate with open banking: Leverage open banking to share verified data directly with lenders, accountants, and the ATO. This not only streamlines finance applications but also proves your business’s working control in a transparent, auditable way.
- Automate compliance reporting: Use cloud accounting tools that generate compliance-ready reports for GST, payroll, and superannuation obligations—minimising manual errors and boosting your credibility with regulators.
For example, an Adelaide-based wholesaler recently adopted a unified payments platform. By automating debtor management and integrating real-time cash flow analytics, they slashed late payments by 35% and secured a better rate on their overdraft facility.
The Regulatory Outlook: 2025 Policy Changes to Watch
Several policy updates in 2025 are making working control even more crucial:
- Enhanced real-time payment rules: The RBA now requires all business accounts to support PayTo and NPP (New Payments Platform) integration, giving businesses tighter control over when and how funds are moved.
- Expanded ATO data-matching programs: The ATO is matching business bank transactions against reported revenue and GST credits, putting a premium on accurate, controlled record-keeping.
- Updated PPSR (Personal Property Securities Register) requirements: Lenders must verify that borrowers have uncontested control over financed assets, making documentation and clear account structures non-negotiable.
These changes mean that businesses with well-documented, auditable working control are not only more likely to get finance, but also less likely to face regulatory headaches.
Conclusion: Working Control is a 2025 Essential
In today’s fast-evolving financial landscape, working control isn’t just a compliance checkbox—it’s a strategic asset. Whether you’re seeking finance, managing cash flow, or preparing for an audit, robust working control gives your business the agility and credibility to stay ahead.
