The Small Business Superannuation Clearing House Is Closing — What Your Business Needs to Do

The way Australian small businesses pay superannuation is about to change. For years, the Small Business Superannuation Clearing House (SBSCH) has been the simplest option for small employers to manage super payments. It’s free, reliable and widely used, especially by small businesses that don’t use modern payroll systems.

But the ATO is retiring the SBSCH completely.

This change is linked to Australia’s move toward real-time super payments and better reporting. If your business currently uses the SBSCH, now is the time to prepare so you don’t fall behind or risk penalties once the system shuts down.

In this guide, we’ll walk through the key dates, what the shutdown means, and the practical steps you need to take so your business stays compliant.

Why the SBSCH Is Closing

The decision to close the SBSCH is part of a broader overhaul of Australia’s superannuation system. The government is rolling out major reforms including:

  • Payday Super (super paid every payday)

  • SuperStream 2.0 (new, real-time reporting technology)

  • Faster processing and verification of employee super contributions

The SBSCH simply cannot support these new systems. It’s built for quarterly payments, not real-time reporting. To modernise the system and reduce confusion, the ATO wants all businesses using the same updated clearing house technology.

In short:
The SBSCH doesn’t fit the new rules — so it’s being phased out.

Key Dates You Need to Know

There are two important deadlines:

1 October 2025 — No new registrations

If you’re not already using the SBSCH, you won’t be able to join from this date.

30 June 2026 — Final day to make payments

This is the most important date for employers.

After 30 June 2026, you will not be able to make super contributions through the SBSCH at all. The system will be locked.

1 July 2026 — Full shutdown

From this day forward, the SBSCH no longer exists.

How This Affects Employers

If you currently use the SBSCH, you will need to choose a new way to pay super. There is no automatic transition. If you do nothing, you risk:

  • late super payments

  • penalties

  • the Superannuation Guarantee Charge (SGC)

  • losing tax deductions

  • upset staff

  • cash-flow problems

This will be especially important once Payday Super arrives in July 2026.

Your Replacement Options

There are three main ways to replace the SBSCH.

1. Use your payroll software’s built-in clearing house

This is the best and easiest option for most businesses.

Popular accounting systems like:

  • Xero

  • MYOB

  • QuickBooks

  • Reckon

  • Employment Hero

already include SuperStream-compliant clearing houses.

If you use one of these systems, switching will be easy.

2. Use a commercial clearing house

For example:

  • Australian Super clearing house

  • AMP clearing house

  • Industry Super clearing houses

These are good options if you don’t want to change payroll software.

3. Use your super fund’s clearing house

Many industry funds provide free clearing houses for employers.

For example:

  • AustralianSuper

  • REST

  • HostPlus

  • HESTA

These can be reliable, but some may lack the full features of modern payroll systems.

What You Need to Do Before the Shutdown

Here are the steps every business should take:

1. Review your current payroll and super processes

Do you use software? Do you manage super manually? How often do you pay staff?

This gives you a starting point.

2. Choose your new super clearing house

Consider:

  • cost

  • ease of use

  • integration with payroll

  • reporting capability

  • ability to support Payday Super

3. Check and update employee super details

Make sure you have:

  • correct fund name

  • member number

  • ABN and USI codes

  • TFNs

Incorrect details cause payment failures.

4. Update your internal systems

Once you choose your new clearing house, update:

  • payroll comments

  • payment cycles

  • super deadlines

  • staff checklists

Starting early allows time for testing.

5. Notify your employees

Tell them:

  • you are switching systems

  • payments may appear differently

  • their super fund will continue receiving contributions normally

This keeps everyone informed and avoids confusion.

Understanding the Risks of Missing the Deadline

If you don’t transition by 30 June 2026, you risk:

1. Late super payments

Once the SBSCH closes, any attempt to pay through it will fail.

2. The Superannuation Guarantee Charge (SGC)

This is one of the harshest penalties in the tax system.

The SGC includes:

  • your unpaid super

  • interest (10% per year)

  • administration fees

  • no tax deduction

Once you incur the SGC, you cannot reverse it — even if you immediately pay the super.

3. Cash-flow disruption

Real-time payments will change the timing of super expenses.

4. ATO compliance action

The ATO will have real-time visibility into late payments.

How Carmody Accounting Can Help

Carmody Accounting can make this transition easy. We can:

  • Review your payroll and super setup

  • Recommend the best replacement clearing house

  • Set up and test the new system

  • Update employee details

  • Train your staff

  • Prepare you for Payday Super

  • Ensure all payments are compliant

We can also integrate systems like Xero, MYOB and QuickBooks so super is seamless and automated.

FAQ (Optimised for Featured Snippets)

When does the SBSCH shut down?

The SBSCH will close on 1 July 2026, with the final payment date being 30 June 2026.

Why is the SBSCH closing?

It is being shut down because it cannot support new real-time super rules like Payday Super and SuperStream 2.0.

What should employers do now?

Choose a new clearing house, update payroll systems and ensure all employee super details are correct.

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