Small Business Superannuation Clearing House Closure

Time’s Up for the ATO’s Free Super Clearing House – Here’s What You Need to Know

What’s Changing?

The ATO’s Small Business Superannuation Clearing House (SBSCH)—a free service that has simplified super payments for small employers—is being phased out. Here are the key dates:

• 1 October 2025: Registration for new users will no longer be allowed Australian Taxation Office+1.
• 30 June 2026: The service will be fully decommissioned. After this, even existing users will lose access Australian Taxation Office+1.

If you currently rely on the SBSCH, now’s the time to consider alternatives.

Why Is It Closing?

This change is part of the Payday Super reform, which aims to align super payments more closely with employee pay cycles—eventually requiring super to be paid at the same time as wages. The SBSCH wasn’t built for that structure, so a more modern system is needed.

What Does This Mean for Your Business?

1. You’ll Lose a Free, Convenience Tool

The SBSCH has offered a simple, one-pay solution for paying super in bulk, with automatic distribution to each employee’s fund. Its closure means that simplicity is coming to an end Australian Taxation Office.

2. New Responsibilities & Potential Costs

• You’ll need to transition to alternatives—including paid clearing houses, super fund portals, or payroll software with built-in super functionality.
• There may be subscription fees or transaction costs for these services—so factor the cost into your budgeting.

3. Cash Flow & Penalty Risks

MYOB research warns that over 20% of SMEs could face insolvency under the new payday super model due to cash flow pressures (The Australian).
With tighter payment windows, any lags—weekends, processing delays, or mistakes—can lead to penalties (The Australian).

What You Should Do Right Now

Begin the Transition Early

Don’t wait until the last minute—transitioning early gives you breathing room to choose the right system and train staff.

Explore Your Alternatives:

• Payroll Software: Many platforms (Xero, MYOB, QuickBooks) now include super payment features. If you're already using one, it may just require activation.
• Super Fund Clearing House: Some funds offer clearing services directly for employers. (Our practice uses Australian Retirement Trust’s clearing house)
• Commercial Clearing Houses / Payroll Providers: Options like Payroo, Thriday, or others can handle SG payments for you.

Review Your Cash Flow and Processes

Ensure your systems are flexible enough to handle more frequent super payments. Plan for weekends or payment processing times to avoid missing deadlines.

Seek Expert Advice

Your accountant or bookkeeper can help tailor a setup that fits your business—keeping you compliant and minimising disruption.

Timeline at a Glance

Date	What Happens
1 October 2025	New registrations for the SBSCH close
30 June 2026	SBSCH service is shut down for all users