From 1 July 2026, the Australian Taxation Office’s (ATO) Small Business Superannuation Clearing House (SBSCH) will be permanently closed as part of a broader shift in how employers meet their superannuation obligations. This milestone marks a significant change in the administrative processes for super contributions, especially for small and medium-sized businesses in Australia.
Why the Clearing House Is Being Retired
The SBSCH has long offered smaller employers a free and centralised way to pay superannuation guarantee (SG) contributions. Instead of making separate payments to multiple super funds, employers could send a single electronic payment to the clearing house, which then distributed the funds on the employer’s behalf.
However, the move toward “Payday Super” reforms — requiring super contributions to be paid more frequently and aligned with employees’ pay cycles — is reshaping this landscape. Under the new framework, employers are expected to make super payments each pay run or within a short window after payday, rather than quarterly in arrears. Because the existing clearing house system was not designed for this accelerated pace, the ATO has opted to shut down the service and encourage businesses to adopt modern payroll systems or alternative clearing house options that support more frequent contributions.
Key Dates to Remember
The transition away from the SBSCH is already underway:
- 1 October 2025 – New registrations for the SBSCH stopped, so businesses can no longer sign up for the service.
- 30 June 2026 – Existing users can continue to use the service up to this date.
- 1 July 2026 – The clearing house is fully decommissioned, and employers must use alternative compliant systems for paying super.
Impact on Businesses with Employees
The closure of the clearing house and the shift to more frequent super payments have a number of implications:
1. More Frequent Payments and Cash-Flow Planning
Under the upcoming rules, employers will need to pay superannuation contributions in line with each pay period — weekly, fortnightly or monthly — instead of quarterly. This increases the number of transactions a business has to manage each year, which may impact cash flow, particularly for small employers who previously relied on quarterly timing to hold funds longer.
For businesses that regularly run weekly payroll, this could mean jumping from four super payments per year to dozens of payments annually. Better cash-flow planning and updated cash-management strategies will be essential to keep up with this rhythm.
2. Adoption of Alternative Clearing Houses or Software Solutions
The SBSCH’s closure means businesses must find alternative ways to lodge super payments. There are several options:
- Commercial clearing houses offered by payroll providers or super funds.
- Payroll software with integrated super functions (most major payroll systems are updating their platforms to handle the new requirements).
- Super fund-specific tools, many of which provide free clearing services when you set the fund as default.
It’s important for employers to confirm that the method they choose is SuperStream compliant and supports the accelerated payment timeline.
3. Compliance and Reporting Challenges
With the new regime, employers will also rely more heavily on electronic reporting standards such as STP Phase 2 (Single Touch Payroll) to submit payroll and super information. STP ensures that the ATO receives up-to-date data, which helps enforce compliance and track contributions more accurately. Employers must ensure their payroll systems are current and capable of handling these requirements.
Failing to comply with super obligations — whether by missing payments or lodging them late — can result in penalties under the Superannuation Guarantee Charge (SGC) regime. While the government has signalled a measured compliance approach during the initial phase, businesses remain liable for interest, administrative fees and potential penalties if they don’t meet their obligations.
Final Thoughts
The closure of the SBSCH on 1 July 2026 is more than just an administrative update — it reflects a broader effort to modernise superannuation compliance and ensure employees receive their entitlements more promptly. For employers, this change brings both challenges and opportunities:
- Challenges include updating payroll processes and managing more frequent payments.
- Opportunities include adopting automated systems that reduce errors, improve compliance and deliver better reporting insights.
Start planning now. Review your current payroll workflows, talk to your accountant or payroll provider, and make sure your systems are ready well before the July 2026 deadline. Transitioning smoothly will help keep your business compliant and reduce the risk of unnecessary penalties.