Starting October 1, small businesses across Australia must prepare for a major shift in how they manage superannuation payments. The Small Business Superannuation Clearing House (SBSCH), a free service that has simplified payments for over 200,000 businesses, will be closed to new users as part of a larger government overhaul set to take effect in July 2026.
The impending changes are a part of the transition to Payday Super, a new system that requires workers to receive superannuation contributions every time they are paid, instead of the current quarterly system. Business owners must act fast to ensure they remain compliant, with a deadline to register for the SBSCH fast approaching and a potential penalty risk looming for late payments.
The Role of SBSCH and Its Upcoming Shutdown
The SBSCH, offered by the Australian Taxation Office (ATO), has been a vital tool for small businesses with fewer than 19 employees and a turnover of less than $10 million. It allows business owners to make a single payment for all employees’ superannuation contributions, streamlining a potentially time-consuming process.
The service has helped small businesses avoid complications in managing their super obligations, ensuring that all payments meet government standards. With the introduction of Payday Super from July 2026, however, the SBSCH will no longer be suitable for a system that requires super contributions to be made with each wage payment, rather than quarterly.
As a result, the ATO announced that new sign-ups for SBSCH would be closed as of October 1, 2025, and businesses still using the service need to make preparations for the transition. According to the ATO, business owners are advised to explore other payment methods, such as payroll software, super funds, or commercial clearing houses, to handle the new frequent payment schedule.
The Risks of Transitioning to Commercial Clearing Houses
While the shutdown of SBSCH may lead to more streamlined processes in the long term, experts are concerned about the increased administrative burden for small business owners. Tony Greco, senior tax advisor at the Institute of Public Accountants, warns that businesses shifting to commercial clearing houses may face new risks.
Unlike SBSCH, which provides protection for employers in cases of delayed payments, commercial clearing houses will hold businesses responsible for any issues in the transfer of super payments, even if the delay is beyond their control.
For small business owners who have relied on the no-cost service, this added liability is a significant concern. Greco has called for the ATO to ensure that adequate support and guidance are provided to help employers navigate the transition effectively, avoiding unnecessary penalties as the shift to Payday Super unfolds.
