The Australian Taxation Office’s free Small Business Superannuation Clearing House has helped hundreds of thousands of employers lodge compulsory super contributions since 2010. That era is ending. The ATO confirmed that new registrations closed on 1 October 2025 and all payment functionality will cease on 1 July 2026. Contributions processed after 23:59 AEST on 30 June 2026 will be rejected. Any employer relying on the SBSCH after that moment risks an immediate Superannuation Guarantee Charge assessment, general-interest charges, administrative penalties and, in serious cases, director penalty notices.
Why the abrupt timeline? It dovetails with the federal government’s Payday Super reforms, which mandate that from 1 July 2026 super must be paid on or before the day salary and wages are paid. Quarterly “catch-up” runs will no longer satisfy the law. The SBSCH’s existing architecture cannot support that real-time model, so the ATO is withdrawing the service while commercial clearing houses and integrated payroll platforms step in.
Why the ATO Is Closing the Clearing House: The Payday Super Connection
Under section 23A of the Superannuation Guarantee (Administration) Act 1992 the Commissioner “may” operate a clearing house to help small businesses discharge their obligations. The permissive wording gave the ATO freedom to build the SBSCH and, equally, freedom to retire it once it no longer met policy needs. Treasury’s 2024 Delivering Better Financial Outcomes and Other Measures Act requires employers to send contribution data through SuperStream in real time. Modern payroll software can already push this information via Single Touch Payroll phase 2, whereas the SBSCH relies on daily batch files and manual data entry. Upgrading it would duplicate services the private sector already provides. Closing it allows the ATO to concentrate resources on compliance and analytics rather than on being a free payment processor.
The government also argues that market providers offer richer features, two-way fund validation, choice-of-fund capture, automated error checking and integrated employee onboarding. By encouraging the switch now, the ATO hopes to avoid a frantic bottleneck when Payday Super becomes law.
Your Transition Roadmap From SBSCH to Payday-Ready Payments
Every employer that still uses the SBSCH should begin its transition immediately. The goal is simple: make authentic, on-time super contributions without paying more fees or consuming more administration hours than necessary. The practical steps fall naturally into a three-phase workflow.
First, assess your current payroll and bookkeeping environment. Ask whether your existing payroll software already offers a built-in SuperStream clearing house. Xero, MYOB Business, QuickBooks Online and KeyPay, for example, all provide “click-to-send” super payments for a small per-transaction fee or under a monthly subscription. If you run manual spreadsheets, you will need either to adopt payroll software or to register directly with a third-party clearing house.
Second, select and test your alternative provider. The ATO publishes a non-exhaustive list of SuperStream-approved clearing houses on its website. Choose one that integrates with your payroll, supports your employees’ funds, meets ISO 27001 information-security standards and transparently discloses fees. Register well before the June 2026 deadline, load your employees’ fund details and submit at least one live contribution as a proof-of-concept. Keep a copy of the SuperStream response messages, known colloquially as “success receipts”, because these prove you paid on time if the ATO later audits you.
Third, embed Payday Super cadence. From 1 July 2026 every super entitlement is due no later than payday. Configure your payroll cycle to send contributions concurrently with net wages. Most modern platforms allow you to tick a box that says “Include super” when you finalise a pay run; the software then pushes data and payments straight through the clearing-house gateway. Schedule a post-payrun reminder so that one person in finance confirms that the clearing house has accepted the batch. Retain the electronic receipt with your payroll reports for at least five years, as required under the Taxation Administration Act 1953.
Throughout the transition keep employees informed. The ATO’s Employee Choice of Fund form (NAT 13080) remains valid, and workers may use the closure as an opportunity to switch funds. Document any changes in writing, update bank details and ensure the new fund appears in your clearing house before the next pay cycle.
Comparing Your Clearing House Options: Free, Freemium and Paid Solutions
Cost and convenience vary widely across the market. The table below summarises the most common options available to small businesses after the SBSCH closes.
| Provider type | Up-front cost | Ongoing fee model | Payroll integration | Processing cut-off time | Support channel | Typical settlement speed |
|---|---|---|---|---|---|---|
| Integrated payroll (e.g. Xero Auto Super, MYOB Super Portal, KeyPay Beam) | Nil | $0.10–$0.25 per employee per contribution or included in premium subscription | Native, one-click inside pay run | Same day if sent before 4 pm AEST | In-app chat, phone, email | Funds receive money next business day |
| Stand-alone commercial clearing house (e.g. Westpac QuickSuper, ClickSuper) | Nil | Free for payers banking with provider or tiered monthly fee (approx. $20–$70) | CSV upload, API connectors | Varies, typically 3 pm AEST | Phone, email | Two business days |
| Industry super fund clearing house (e.g. AustralianSuper QuickSuper white-label) | Nil | Free if majority of employees in host fund, otherwise small transaction fee | Manual file upload, limited payroll plugins | 3 pm AEST | Email only | Two business days |
| Outsourced payroll bureau | $200–$1 000 implementation | Monthly retainer $150–$400 plus $5-$8 per payslip | Bureau handles all data | Bureau cut-off defined in contract | Dedicated manager | Same or next business day |
| Manual EFT direct to each super fund | Nil | Nil | None | Bank file cut-off | None | Up to five business days, high error risk |
Integrated payroll solutions dominate the small-business market because they reduce data-entry errors and automatically generate SuperStream-compliant message files. They also satisfy Payday Super by sending the data and money at the same time the pay run is closed, which removes a major compliance headache.
Compliance Pitfalls and How to Avoid Them
The most common mistake during a clearing-house migration is assuming that registering with a new provider alone discharges the Superannuation Guarantee obligation. The legal requirement is met only when the employee’s chosen fund receives the contributions in cleared funds by the due date. If an employer authorises payment in the new system but the bank account lacks sufficient funds, the payment fails and penalties accrue.
Data mismatches also trigger delays. SuperStream validation will reject a contribution file if the employee’s surname, tax file number or fund USI differs from the records held by the destination fund. For example, a simple typographical error such as “REST Super” instead of “Retail Employees Superannuation Trust” can produce a fatal error that rolls back the entire batch. Employers should run at least one reconciliation report after every migration pay cycle, confirming that the clearing house status reads “Success” or “Received” for each employee.
Cash-flow timing can create hidden traps. Remember that from 1 July 2026 super contributions are due on payday. If you run a fortnightly pay cycle, you will need to outlay super contributions twenty-six times a year, not four. A business with twelve staff on a combined $680 000 in ordinary-time earnings will see its super outflows rise from roughly $18 700 every quarter to about $6 200 every fortnight. Reviewing bank overdraft limits and forecasting cash requirements early will prevent inadvertent late payments.
Case Study: How One Retailer Switched in 14 Days
Consider BrightLane Homewares, a Melbourne-based retailer with sixteen permanent staff and an annual turnover of $5.8 million. The business had used the SBSCH since 2013 and processed super quarterly. After reading the ATO’s October 2025 announcement, the owners set a self-imposed deadline of 31 December 2025 to migrate.
On day one the payroll officer audited the existing employee masterfile, correcting incomplete addresses and capturing missing tax file numbers. By day three BrightLane shortlisted two providers: Xero’s Auto Super, already embedded in its existing ledger, and an industry fund white-label clearing solution. The deciding factor was automation: Auto Super could submit contributions automatically when the pay run was approved, while the white-label option required a manual file export.
Implementation took less than an hour. The payroll officer entered the super fund USI codes, linked each employee and ran a $1 test payment. Two days later Auto Super returned a successful response message. The business then shifted its payroll calendar so that fortnightly runs finalised every second Wednesday, leaving two clear days for bank settlement before wages hit employee accounts on Friday morning.
BrightLane’s finance manager noted that transaction fees would total about $230 a year, but internal labour savings from no longer keying data into the SBSCH were estimated at $1 100. The owners decided the net gain justified proceeding immediately rather than deferring until the statutory deadline.
Backup Plans for Technical Glitches and Payment Failures
Even the best systems encounter outages. The ATO recommends creating a written contingency plan that outlines how you will make super contributions if your chosen platform experiences downtime on payday. Practical options include preparing a standing direct-entry ABA bank file that pays each employee’s fund individually, or maintaining an active registration with a secondary clearing house. Ensure you have administrator credentials, up-to-date fund details and access to a bank account with appropriate limits. Document procedures for high-risk scenarios such as internet disruption or multi-factor-authentication lockouts. If a genuine system-wide outage prevents payment, record evidence, screenshots of error messages, support-ticket numbers, so you can show the ATO you acted promptly and reasonably.
Frequently Asked Questions
Employers consistently raise the same concerns when planning their migration. The answers below draw on the ATO’s guidance as at October 2025.
Can I keep using the SBSCH until 30 June 2026?
Yes, existing users may lodge contributions through the service until 23:59 AEST on 30 June 2026. Contributions must still be lodged by the quarterly due date until Payday Super commences.
What happens if I miss the closure date?
Any payment attempt after 1 July 2026 will fail. The obligation to pay super will remain unmet, and the ATO can issue a Superannuation Guarantee Charge assessment. The charge includes the shortfall, 10 percent interest and an administration fee of $20 per employee per quarter.
Is there another free government clearing house?
No. The SBSCH is the sole government-operated clearing house, and no replacement is planned. All alternatives operate on commercial or subsidised models.
Will Payday Super change the superannuation guarantee rate?
No. The SG rate is scheduled to rise to 11.5 percent on 1 July 2025 and to 12 percent on 1 July 2026 under existing legislation. Payday Super affects timing, not percentage.
Do owner-managers paying themselves super through a company need a clearing house?
If you are paid through payroll and the company claims a deduction for your super, you must use a SuperStream method. Paying directly into your own fund via BPAY without a SuperStream message breaches the standard. Most owner-managers adopt the integrated clearing option within their payroll software.
Penalties and Enforcement: The Cost of Inaction
Late or missed contributions trigger the Superannuation Guarantee Charge. As at FY 2025-26 the nominal interest component is 10 percent and compounded quarterly. A general interest charge, currently 14.29 percent, is also imposed on outstanding debts. Civil penalties under the Taxation Administration Act reach 200 penalty units, equivalent to $62 600 for a single contravention. Company directors can become personally liable under director-penalty provisions if their company fails to meet super obligations within three months of the due date. In extreme or repeated cases, criminal penalties of up to $31 300 and 12 months’ imprisonment apply.
The ATO’s enforcement approach during the transition period is pragmatic rather than punitive. Employers that demonstrate reasonable steps toward compliance, such as registering with a new provider, maintaining communication with employees and retaining evidence of attempted payments, can expect leniency. Nonetheless, the regulator has emphasised that no amnesty will exist after 1 July 2026.
Building Long-Term Compliance Confidence
Migrating from the SBSCH is more than an administrative task. It represents a shift to real-time superannuation, increased transparency and closer alignment between payroll data and contribution flows. Employers who seize the opportunity to automate processes now will spend fewer hours on manual data entry, reduce error rates and improve employee satisfaction.
Begin by mapping your current processes, selecting a SuperStream-compliant clearing house that meets both functional and budgetary needs, and executing live tests long before the statutory deadline. Train payroll staff, update procedure manuals and refresh your cash-flow forecasts to accommodate more frequent contribution cycles. Finally, retain digital receipts for every contribution, because those files become your first line of defence in an ATO audit.
Australians increasingly expect their superannuation to compound without interruption, and the law reflects that expectation. By treating the SBSCH closure as the catalyst for modernisation rather than a bureaucratic nuisance, small-business owners can position themselves for seamless compliance under Payday Super and beyond.
EEA Advisory specialises in helping businesses handling complex payroll and superannuation compliance changes with confidence. Our team can assess your current payroll setup, recommend the most efficient SuperStream-compliant clearing house, and manage your transition to Payday Super without disrupting existing processes. We also provide tailored cash-flow forecasting, director compliance guidance and end-to-end Xero integration so that super contributions are processed automatically and on time. Whether you operate as a small family business or a growing multi-entity group, EEA Advisory ensures your payroll, super and reporting obligations are accurate, timely and fully compliant with ATO standards.
