SBSCH Is Closing: What Small Business Owners Need to Know - Part 1
If you're a small business owner who's been happily using the ATO's Small Business Superannuation Clearing House (SBSCH) to pay your employees' super, we’ve got some news that might make you reach for another coffee.
The free service that's been making your life easier is closing down, and you'll need to find an alternative before July 2026.
Don’t panic just yet – you’ve got time to sort this out, and there are plenty of options available. Let’s break down what’s happening and why.
What’s Actually Happening?
The government has announced that the SBSCH will be shutting down as part of the new “payday super” reforms.
Here are the key dates you need to know:
1 October 2025 – No new businesses can register for the SBSCH.
30 June 2026 – Last day existing users can use the service.
1 July 2026 – The SBSCH closes completely.
The closure coincides with new legislation (yet to be finalised) that will require employers to pay super contributions at the same time as wages, rather than quarterly. Under these rules, super contributions must reach your employees’ funds within seven days of each payday.
Why Is the ATO Pulling the Plug?
The short answer: the SBSCH was built for the old quarterly system and simply doesn’t fit the new payday super approach.
The Government has explained that:
“Improvements in payroll software solutions over recent years provide employers with cost-effective and more fit-for-purpose options for paying superannuation contributions on payday.”
What Does This Mean for Your Business?
If you're one of the over 200,000 small businesses currently using the SBSCH, this change will affect you in several ways:
1. You’ll Need a New Solution
This is the big one. You’ll need to research, select, and set up a new method of paying super well before June 2026. The ATO is encouraging businesses to start early, not wait until the last minute.
2. Costs Might Increase
The SBSCH has been completely free. Many alternative solutions charge fees – whether that’s per transaction, a monthly subscription, or fees built into payroll software. This is likely the most concerning part for small business owners who’ve enjoyed a free service until now.
3. Tighter Timeframes
From 1 July 2026, contributions must reach super funds within seven days of payday – not quarterly.
4. New Payroll Processes
Instead of batching payments every three months, you’ll need to integrate super into every pay run. This may mean learning new software or adjusting existing payroll processes.
Don’t Stress – There Are Options
While this may feel overwhelming, there are plenty of alternatives available, many of which could actually streamline your processes once you’re set up. The key is to start researching early.
Broadly, your options fall into three categories:
Payroll software with built-in super payment features.
Clearing house services offered by super funds.
Commercial clearing house providers.
Each has its pros and cons depending on your business size, current systems, and budget.
What’s Coming in Part 2
In our next article, we’ll dive deeper into the specific alternatives available to replace the SBSCH. We’ll look at examples of:
Payroll software solutions,
Super fund clearing houses, and
Commercial providers.
We’ll also help you understand what to consider when choosing the right option for your business.