The ATO has announced it will be phasing out the Small Business Super Clearing House (SBSCH) as part of the government’s Payday Super reforms. Small businesses need to start preparing now to avoid disruption.
Key Dates
- From 1st October 2025 – No new registrations for SBSCH.
- 1 July 2026 – SBSCH closes permanently for all users. From this date, employers must use an alternative clearing house or pay super directly via their payroll software.
Why the Change?
- The government is moving towards Payday Super, which will mean superannuation must be paid on the same day as wages.
- Real-time super payments are not supported by the current SBSCH infrastructure.
Impact on Small Businesses
- Loss of a free ATO operated clearing house.
- Possible extra administrative and service-related costs associated with any changeover to commercial clearing houses.
- Need to ensure payroll processes are compliant with the Payday Super.
- Greater expectation for accurate and timely reporting; delays will become compliance issues.
What Small Businesses Should Do Next
- Review payroll software to ensure it supports integrated super payments.
- Choose an alternate clearing house, either a commercial provider, or a clearing house provided by the fund (many industry funds offer this option free of cost).
- Update internal payroll procedures in preparation for the 2026 deadline.
- Begin the trialing of new systems in 2025 to avoid issues that may arise from last-minute transition.
- Communicate changes to your bookkeeper, internal accountant and payroll staff.
If you think you will be impacted by the closure, please do not hesitate to contact our office.
