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SBSCH Is Closing: How Small Businesses Can Prepare for Super Changes

Posted 3 Dec '25

For those who may not be aware, the ATO’s Small Business Superannuation Clearing House (SBSCH) will permanently close on 1 July 2026. From 1 October 2025, new registrations will no longer be accepted.  This is a major change that affects small businesses across all industries currently using the SBSCH to pay their employees’ super.

In this post, we’ll explain what the closure means, outline the key dates and upcoming changes, and show you how to prepare your business to ensure a smooth transition to the new super payment system.

Understanding the Changes: What’s Happening and When

Here’s a quick look at the timeline for the SBSCH changes:

  • 1 October 2025: The ATO will stop accepting new SBSCH registrations.
  • 30 June 2026: The final day businesses can use the SBSCH to make payments.
  • 1 July 2026: Payday Super begins!! This requires employers to pay superannuation at the same time as employee wages.


Essentially, the closure of the SBSCH is to align to the  government’s Payday Super reforms, designed to ensure employees receive their super contributions more promptly and transparently.

Why This Matters to Your Business

For those businesses who already use integrated system within their payroll, this announcement doesn’t matter to you (yes you are free to stop reading now!).

However, businesses that rely solely on the SBSCH should start reviewing their payroll and super processes now to ensure they’re ready before the 2026 deadline. Failing to act early could mean missed payments, compliance issues, or ATO penalties.

How to Transition Away from the SBSCH

1. Review Your Payroll or Accounting Software

Most modern payroll programs (such as Xero, MYOB, or QuickBooks) already include super clearing functionality. Check that your software is compatible with SuperStream standards, enable automated super payments, and conduct a test run before 1 July 2026.

2. Use a Commercial Clearing House

Commercial clearing houses such as QuickSuper, Beam, or others, offer easy bulk uploads and automated processing for super contributions. These services can help simplify compliance and reduce manual data entry.

3. Use Employees’ Super Fund Clearing Options

Many super funds offer free or low-cost clearing services to employers. If you prefer a simple, fund-based solution, reach out to your employees’ nominated super funds to see what’s available.

Don’t Forget Stapled Super Obligations

Since November 2021, employers must request stapled super fund details from the ATO if an employee doesn’t choose their own fund.

  • Failing to request stapled fund details may result in Super Guarantee Charge penalties.
  • If the employee has no stapled fund, contributions must go to your default fund.


Make sure your HR and payroll team are familiar with this process to avoid compliance issues during the transition.

Upcoming SuperStream Enhancements with Payday Super

When Payday Super begins in July 2026, it will introduce several major enhancements:

  • Real-time payments using the New Payments Platform (NPP)
  • Member Verification Requests (MVRs) to confirm fund details before sending payments
  • Improved error messaging to prevent rejected transactions
  • Faster handling of unallocated contributions (reduced from 20 days to just 3)


These updates will make super payments faster, safer, and easier to track.

Conclusion

The SBSCH has been a valuable, free service for small businesses for many years but its closure marks the beginning of a more efficient and transparent super system.

By preparing now, you can ensure:

  • A smooth transition to Payday Super in 2026
  • Continued compliance with SG laws
  • No last-minute scrambling as deadlines approach


Need help transitioning from the SBSCH or preparing for Payday Super?
📞 Get in touch with our team at Empire Bookkeeping today. We’ll help you review your payroll software, set up a compliant clearing house, and ensure your business is ready for the upcoming super changes.

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