The ATO has announced that its Small Business Superannuation Clearing House (SBSCH) will be wound down over the next year, with the service to be completely shut by 1 July 2026. For small employers who rely on this free tool to manage super payments, now is the time to start planning for alternatives.
The Small Business Super Clearing House Is Closing – Here’s How to Prepare
The ATO has announced that its Small Business Superannuation Clearing House (SBSCH) will be wound down over the next year, with the service to be completely shut by 1 July 2026. For small employers who rely on this free tool to manage super payments, now is the time to start planning for alternatives.
Key Dates to Know
- From 1 October 2025 – The SBSCH will no longer accept new registrations.
- From 1 July 2026 – The SBSCH will close entirely, and all existing users will need to switch to a different system.
This move ties into the upcoming Payday Super reform, which will require employers to pay super at the same time as wages rather than on a quarterly basis.
Who Will Feel the Impact?
The SBSCH was designed for:
- Employers with fewer than 20 staff, or
- Businesses with turnover under $10 million.
It’s been a simple, government-provided service that allowed small businesses to pay multiple super funds through one platform, while staying compliant with SuperStream standards.
Why the Shutdown Matters
For many businesses, the SBSCH has been a no-cost way to handle super obligations. Its closure means:
- Businesses will need to find a SuperStream-compliant alternative.
- Many solutions (like payroll software or third-party clearing houses) may involve additional fees.
- Workflows and staff processes will need to adapt before the deadline.
Steps to Take Now
To stay ahead of the change, small businesses should:
- Review current processes – Are you relying on the SBSCH today?
- Compare replacement options – Consider payroll platforms, your default super fund’s clearing service, or other clearing houses.
- Upgrade your payroll software – Check that it’s set up for automated super payments and tested for compliance.
- Train payroll staff – Ensure your team understands the new process well before July 2026.
- Get used to more frequent payments – If possible, start trialling more regular super contributions to prepare for Payday Super.
Practical Tips
- Popular software such as Xero now includes automated super features across all plans, helping employers remain compliant.
- Some default super funds also provide free or low-cost clearing services — worth checking before committing to a paid option.
Reminder: What’s a Default Super Fund?
Every employer must nominate a default fund. This is where contributions go for employees who haven’t selected their own superannuation fund and don’t already have a “stapled” fund linked to them.
Unsure how to navigate the end of the SBSCH and the move to Payday Super? Our accounting team can help you transition smoothly.
