The Australian Government has announced the closure of the ATO’s Small Business Superannuation Clearing House (SBSCH) as part of the introduction of “payday super” reforms. If your business currently uses the SBSCH to make superannuation contributions, it is important to be aware of the upcoming changes and plan for a smooth transition.
Key Dates
- 1 October 2025 – New registrations for the SBSCH will no longer be accepted.
- 30 June 2026 – Final date for existing users to make contributions through the SBSCH.
- 1 July 2026 – The SBSCH will close permanently.
Why is the SBSCH Closing?
The SBSCH was developed to support the quarterly superannuation payment system. However, from 1 July 2026, new legislation will require employers to make super contributions at the same time as wages are paid. Under these rules, contributions must reach employees’ super funds within seven days of each payday, making the SBSCH model no longer fit for purpose.
What This Means for Employers
If you are one of the 200,000+ businesses using the SBSCH, you will need to implement an alternative before the closure. Consider the following impacts:
- New payment solution required – employers must transition before 30 June 2026.
- Potential costs – while the SBSCH was free, many commercial solutions charge fees.
- Stricter deadlines – contributions must reach funds within seven days of payday.
- Process changes – superannuation payments will become part of every pay run.
- Alternative Options
- Payroll software: Many accounting and payroll systems now include integrated super payment features, allowing contributions to be processed seamlessly when running payroll.
- Super fund clearing houses: Most super funds offer their own clearing house facilities at no cost, although these may involve additional data uploads or manual entry.
- Commercial providers: Independent clearing houses often provide more advanced features and compliance support, though usually for a fee.
Next Steps
The ATO recommends that businesses begin planning their transition well before 2026. This will allow time to select a suitable solution, test new processes, and ensure compliance before the new rules take effect.
If you would like assistance in reviewing your payroll and superannuation processes, or guidance in selecting the most appropriate solution for your business, we are here to help.