If you’re a small business owner who’s been happily using the ATO’s Small Business Superannuation Clearing House (SBSCH) to pay your employees’ super, we’ve got some news that might make you reach for another coffee. The free service that’s been making your life easier is closing down, and you’ll need to find an alternative before July 2026.
Don’t panic just yet – you’ve got time to sort this out, and there are plenty of options available. Let’s break down what’s happening and why.
What’s actually happening?
The government has announced that the SBSCH will be shutting down as part of the new “payday super” reforms. Here are the key dates you need to know:
- 1 October 2025: no new businesses can register for the SBSCH;
- 30 June 2026: last day existing users can use the service; and
- 1 July 2026: the SBSCH closes completely.
The closure coincides with new legislation (yet to be finalised) that will require employers to pay super contributions at the same time as wages, rather than using the current quarterly system. Under these new rules, super contributions must reach your employees’ funds within seven days of each payday.
Why is the ATO pulling the plug?
The short answer is that the SBSCH was designed for the old quarterly super payment system, and it simply doesn’t fit with the new payday super world we’re heading into. The Government has stated that “improvements in payroll software solutions over recent years provides employers with cost-effective and more fit for purpose options for paying superannuation contributions on payday”.
What does this mean for your business?
If you’re one of the over 200,000 small businesses currently using the SBSCH, this change will impact you in several ways:
You’ll need to find a new solution: This is the big one. You’ll need to research, select and set up a new way to pay super contributions well before the June 2026 deadline. The ATO is encouraging businesses to start this transition early rather than waiting until the last minute.
Costs might increase: The SBSCH has been completely free to use. Many alternative solutions charge fees – whether that’s a per-transaction cost, a monthly subscription or fees built into payroll software. This is probably the most concerning aspect for small business owners who’ve been enjoying the free service.
Timeframes will be tighter: Under the new rules to commence from 1 July 2026, super contributions must reach funds within seven days of payday.
Your processes will change: Instead of batching super payments quarterly, you’ll need to integrate super payments into every pay run. This might mean learning new software or adjusting your current payroll processes.
Don’t stress – there are options
While this might sound overwhelming, there are actually plenty of alternatives available, and many might even make your life easier once you get used to them. The key is starting your research early and not leaving it until the last minute.
Your options broadly fall into three categories:
- payroll software with built-in super payment features;
- clearing house services offered by super funds; and
- commercial clearing house providers.
Each has its own pros and cons depending on your business size, current systems and budget.
