Payday Super and Retirement of the Small Business Super Clearing House - Here’s What It Means for Employers
Written by Daniel Dubois
As part of the introduction of Payday Super, the Australian Tax Office (ATO) has announced the closure of its Small Business Superannuation Clearing House (SBSCH), marking the end of an era for many small employers who have relied on the free service. Most of the online accounting systems have since introduced viable options, which will likely be the most appropriate place for affected employers to move to.
These changes aim to modernise how super contributions are paid and tracked, and strengthen employee rights to superannuation as part of their remuneration.
When is it happening?
From 1 October 2025, the ATO stopped accepting new SBSCH registrations.
Current users can continue using the SBSCH service until 30 June 2026, when it will be shut down permanently.
From 1 July 2026, all employers will be required to pay employee Superannuation on the same day as payroll is processed
Why the changes?
The move is designed to support the rollout of Payday Super - a system that ensures employees receive their super at the same time as their wages, rather than quarterly.
These reforms aim to reduce unpaid super, tighten compliance, and give employees faster access to their retirement savings.
What is Payday Super?
Under Payday Super, employers (or their service providers) will process super contributions through payroll software or commercial clearing houses that integrate with accounting systems on the same day that payroll is processed.
The result? Super payments will be made automatically each pay run through Single Touch Payroll - improving accuracy, cutting down on admin, and helping businesses stay compliant in real time.
What happens if you don’t prepare?
Waiting until the last minute could create unnecessary headaches. Employers who don’t transition early may face:
Late payments: Super isn’t considered paid until it reaches an employee’s fund. Missed deadlines could trigger Superannuation Guarantee Charge (SGC) penalties. Late payments will also mean you do not receive a tax deduction for the mandatory superannuation payments, even when made later.
Administrative overload: Manually paying each fund won’t be viable under the new system.
Cash flow pressure: Paying super more frequently means you’ll need to make smaller, regular payments that should make cashflow budgeting easier. Many of our clients have already adopted this.
What are your options?
There are several alternatives to the ATO’s clearing house:
Payroll software such as Xero, MYOB and QuickBooks already manage super automatically with each pay run. We have started transitioning many of our clients to these systems, and the feedback has been overwhelmingly positive. Please let us know if you need assistance with this.
Third-party clearing houses offer paid solutions with added features like detailed reporting.
Industry super fund clearing houses can also be a good fit, particularly where most of your employees are with the same fund.
Our advice
The move to Payday Super will aim to improve payroll processes and ensure that superannuation is paid in a timely manner that integrates superannuation payments with payroll to make cashflow planning easier, and ensure employers receive the tax deduction for superannuation payments. The closure of the SBSCH is more of an administrative shift likely to affect small employers and presents an opportunity to streamline your payroll processes.
We strongly encourage all employers to start planning now - review your payroll setup, assess your cash flow, and move to a compatible system well before 1 July 2026 to ensure a smooth transition.
If you’d like support or advice on how to prepare your business for Payday Super, our team is here to help make the change simple and stress-free.