The ATO’s Small Business Superannuation Clearing House is Closing – Here’s What You Should Know!

The ATO’s Small Business Superannuation Clearing House (SBSCH) has been a low-cost option for smaller employers to meet their superannuation guarantee obligations. With the introduction of the payday super reforms, the SBSCH is closing and employers need to act now to ensure continued compliance.

Below is a guide to what the SBSCH is, why it is closing and the steps employers should take to transition smoothly.

What is the Small Business Superannuation Clearing House (SBSCH)?

The SBSCH lets eligible small employers (generally those with 19 or fewer employees) make one consolidated payment to cover super for all employees. The ATO processes and sends each employee’s contributions to their super fund.

Why do employers use it?

The SBSCH greatly reduces administration and cost. For many small businesses it is an easy, low-cost way to meet quarterly super obligations without needing payroll software or direct arrangements with multiple funds.

Why is the SBSCH closing?

With the payday super changes, employers must align super contributions with each employee’s payday. This requires employers to calculate, pay and report super more frequently and in lockstep with payroll.

The SBSCH’s quarterly batching model does not support the new timing and reporting requirements.

The ATO and industry are also moving to systems that integrate payroll, payment and reporting, which the SBSCH is not compatible with.

When do you need to transition?

If you currently pay super quarterly, your January to March 2026 super payment (due on 28 April 2026) should be your final payment through the SBSCH. After that payment, download and save your SBSCH records and set up an alternative payment method.

Note: the April to June 2026 super payment (due on 28 July 2026) cannot be processed through the SBSCH after 30 June 2026.

How to transition

1. Confirm whether payday super applies to you.

Determine if you need to start aligning super with paydays by checking the employee count and the ATO guidance for your obligations.

2. Choose how you will pay super going forward.

Payroll software: Most modern payroll systems now support payday super. They calculate, pay and report contributions at each pay run. Xero, MYOB and other major providers have guides and updates to support the change. If you aren’t already on payroll software, consider moving across.

Direct payments to funds: You can make payments directly to employee funds, but you must meet the timing and reporting rules. This approach increases administrative work and risk of errors.

Clearing houses from private providers: Several commercial clearing houses and software-linked providers can process multiple payments and help with reporting. They commonly support the new payday timings.

3. Check payroll and accounting systems now.

• Make sure your payroll software is updated and set to calculate super per pay cycle, not quarterly. Confirm it supports Single Touch Payroll and payday super reporting requirements where applicable.
• Run a test payroll to confirm super calculations, pay dates and that the system can create the required payment and reporting files or automated payments.

4. Review employee fund details.

Ensure correct fund details: For each employee, verify their nominated super fund and member details ahead of the first payday-super-aligned payment. Incorrect details cause payment delays and compliance breaches.

Check award and enterprise agreement rules: Some employees are covered by rules that affect super timing or choice of fund.

5. Choose payment method and set up automation.

If using payroll software or a clearing house, set up the required bank authorisations and payment schedules so super payments occur automatically on each payday.

If using a commercial clearing house, confirm the provider supports payday super schedules and reporting. Many vendors offer migration guidance.

6. Understand reporting and record-keeping.

Payday super may require different reporting cadence or new fields; ensure your payroll system and processes capture the required information.

Retain records showing super was calculated and paid in line with paydays. This will help if the ATO requests proof.

7. Communicate with employees.

Explain that contributions will be paid at each payday rather than quarterly and confirm their fund details. You can also help employees understand when contributions will appear in their super accounts.

8. Seek advice.

If your payroll is complex, you use third-party payroll providers, or you are unsure about interpretation, talk to your accountant, management accountant, payroll provider or a legal adviser to make sure you meet the new rules.

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your adviser.