You might have heard the rumblings already. The ATO is shutting down the Small Business Superannuation Clearing House (SBSCH).
If youโre one of the 200,000 small businesses currently relying on this free service to pay your employees’ super, this is a big shake-up. I know change can feel like a headache, but this shift is actually happening for a reason that might help us all in the long run: the move toward Payday Super.
Weโre going to break down exactly whatโs happening, why itโs happening, and how you can get your business ready without breaking a sweat.
What is happening to the Small Business Super Clearing House?
The ATO is retiring the SBSCH service completely by 1 July 2026, with new registrations shutting down as early as October 2025.
Basically, the government is phasing out the old manual system to make way for faster, digital-first payments.
For years, the SBSCH has been the go-to for small businesses with 19 or fewer employees or an annual turnover of less than $10 million. It was a reliable way to stay compliant without paying for a commercial clearing house. But as technology moves forward, the old systems just canโt keep up with the speed required for the new regulations coming our way.
Here is the timeline you need to put in your calendar:
- 1 October 2025: The doors close to new users. If you haven’t registered for the SBSCH by this date, you wonโt be able to sign up at all.
- 1 July 2026: The service shuts down for everyone. Existing users will lose access, and you will need a new way to pay super.
This isn’t just a “nice to know”โitโs a “need to action.” If you donโt have an alternative solution in place by the deadline, you risk missing super payments and getting hit with the Super Guarantee Charge (SGC). Nobody wants that.
Learn more about it from the ATO website.
Why is the ATO closing the SBSCH?
The closure is directly linked to the Payday Super reforms, which aim to modernise the superannuation system and ensure employees get their money faster.
The current system allows payments to be processed quarterly. Thatโs a long time for money to be sitting around before it hits an employee’s super fund. The government wants to tighten this up.
The SBSCH wasn’t built for the high-frequency, real-time processing that Payday Super will demand. By moving employers to SuperStream-compliant software and commercial clearing houses, the ATO ensures that data flows automatically and payments settle quickly.
Think of it like upgrading from a fax machine to email. The old way worked, but itโs slow, manual, and prone to “paper jams.” The new way is instant and integrated.
These changes are part of a broader move toward faster, more accurate, and fully digital super processing across Australia’s payroll landscape.
How does Payday Super affect my business?
Payday Super means you must pay your employees’ super contributions at the same time you pay their wages, rather than holding onto the cash for a quarterly lump sum.
From 1 July 2026, super contributions will need to reach the employee’s fund within seven days of payday.
This is a massive shift in cash flow management.
Here is what changes for you:
- Frequency: Instead of four big payments a year, youโll be making super payments every week, fortnight, or month, depending on your pay cycle.
- Cash Flow: You wonโt have that quarterly buffer anymore. You need to have the cash ready to go on payday.
- Admin Load: If you are doing things manually, your admin workload just quadrupled (or more).
If Payday Super becomes law as expected, the “set and forget” mentality of quarterly reporting is gone. You need a system that can handle this frequency without you spending your Friday nights doing data entry.
What are the alternatives to the SBSCH?
You have a few options to replace the SBSCH, ranging from commercial clearing houses to integrated payroll software.
The ATO encourages existing users to transition to alternative options now rather than waiting until the last minute.
Your main options include:
- Integrated Payroll Software: This is the smartest move. Software (like Payroller) handles the calculations, reporting, and payment instructions all in one place.
- Commercial Clearing Houses: Many super funds offer a clearing house service. You can sign up with one directly, though it often requires you to upload files manually.
- Super Fund Portals: Some funds allow you to pay directly, but this gets messy if you have staff across different funds.
The goal is to find a solution that is SuperStream compliant. SuperStream is the standard that ensures money and data get sent electronically in a standard format.
Why manual processing is a trap
You might be thinking, “I’ll just pay directly to the funds.”
Please don’t.
Under Payday Super, data accuracy becomes critical. Contributions are only considered “paid” when they reach the fund. If you make a typo on a reference number or send money to the wrong USI, that payment bounces or gets lost.
While youโre sorting out the error, the seven-day deadline ticks past. Suddenly, you are liable for the Super Guarantee Charge, which includes administration fees and interest.
Manual processing was fine when you had three months to fix a mistake. With a seven-day window, you need automation.
How do I choose the right super payment solution?
Look for a system that automates the flow of data from your payroll directly to the clearing house to minimize errors and save time.
You want a solution that does the heavy lifting for you.
Ask these questions when looking at software:
- Is it STP Phase 2 compliant? You need to be reporting correctly to the ATO anyway.
- Does it have an integrated clearing house? You don’t want to be downloading CSV files from one system and uploading them to another.
- Does it automate payroll calculations? The software should calculate the exact super amount based on OTE (Ordinary Time Earnings) so you don’t have to use a calculator.
- Is it mobile-friendly? Can you run payroll from your phone while you’re on the job site or grabbing a coffee?
The future of payroll and super processing is real-time, automated, and data-driven. Your software should reflect that.
The benefits of switching early
Waiting until July 2026 is risky. Everyone else will be scrambling then, too.
By switching now, you get:
- Peace of mind: You know your system works before the law forces your hand.
- Better habits: You can start getting used to the cash flow rhythm of frequent super payments.
- Less admin: You will immediately stop doing the manual work required by the SBSCH.
Transitioning early allows you to test your new workflow. You can catch any setup issuesโlike missing tax file numbers or incorrect super fund detailsโwhile the pressure is low.
Will this cost me more money?
Most modern payroll software includes superannuation reporting and clearing house integration as part of the subscription, often for a very low monthly cost.
I get itโthe SBSCH was free. Paying for software might feel like an added expense.
But letโs look at the “cost” differently.
How much is your time worth?
If you spend two hours a month manually calculating super, logging into the portal, entering data, and checking for errors, thatโs time you aren’t billing clients or growing your business.
Integrated software helps you:
- Save time: Super contributions are automatically calculated and sent.
- Reduce errors: Automated data flow stops fat-finger mistakes.
- Avoid penalties: Compliance is built-in.
When you weigh a small monthly fee against the risk of fines and the cost of your own labor, software pays for itself pretty quickly.
How to prepare your business for the closure
You can start taking steps today to ensure you are ready for the switch.
Step 1: Audit your current staff details Check that you have the correct super fund details, USIs, and member numbers for all your employees. If you are still using the default fund for everyone, make sure youโre paying into their chosen funds if theyโve nominated one.
Step 2: Review your cash flow Look at your books. Can your business handle paying super weekly or fortnightly? If youโve been using that super money as working capital between quarters, you need to adjust your budget now.
Step 3: Choose your software Don’t just pick the first one you see. Look for a partner that understands small business needs.
Step 4: inform your team Let your employees know that these changes are coming. They will be happy to hear their super is arriving faster!
This change is inevitable. The SBSCH is closing whether we like it or not. The best defense is a good offenseโget your systems sorted now so you can focus on the fun parts of running your business.
Making the switch to Payroller
If you are looking for a simple, compliant way to handle this transition, Payroller is built exactly for businesses like yours.
We don’t just do payroll; we handle the full compliance loop. With Payroller, you can calculate wages, withhold tax, and process super payments all in one seamless flow.
We integrate directly with a SuperStream-compliant clearing house. This means when you run payroll, the super data is ready to go. You don’t have to log into a separate government portal. You don’t have to manually key in data.
Why Payroller is your Payday Super solution:
- Automated Calculations: We handle the math on Super Guarantee rates, even as they change.
- Integrated Payments: Send super contributions directly from the app.
- STP Phase 2 Ready: We keep you compliant with all the latest ATO reporting requirements.
- Mobile First: Run your payroll and pay super from your phone, wherever you are.
The SBSCH closure is a nudge to modernise. Itโs an opportunity to ditch the clunky government portal and move to a system that actually works for you.
Don’t wait for the deadline. Get your business Payday Super ready with Payroller and turn a compliance headache into a “finally, that’s easy” moment.