Small Business Superannuation Clearing House (SBSCH) closing in June 2026: What small businesses must do

If your business currently uses the free Small Business Superannuation Clearing House (SBSCH) provided by the Australian Taxation Office (ATO) you should be aware of a major upcoming change: the service will close from 1 July 2026. For Australian small to mid-sized businesses this means you must transition to an alternative method of paying employees’ superannuation. In this guide we’ll explain what’s happening, why it matters, and when you need to act so you remain compliant and avoid last-minute panic.

What’s happening with the SBSCH?

The SBSCH has long been a free and convenient tool for eligible small businesses (typically those with fewer than 20 employees or with an annual turnover under $10 million) to pay all employee superannuation contributions in a single transaction. However, as part of the wider reforms around Payday Super which will require super contributions to be aligned more closely with each pay run the SBSCH is being phased out. As the SBSCH’s quarterly-batch model will no longer be suitable. You can read more information about Payday Super.

Here are the key dates you need to know revolving the SBSCH closure:

• From 1 October 2025 new employers have not been able to register to use the SBSCH.
• Existing users will still be able to use the SBSCH until 30 June 2026.
• The service will officially close on 1 July 2026.

Why this change matters

For many small businesses the SBSCH has been a simple, no-cost backstop to meet super obligations. However, the impending closure means you’ll need to act or risk:

• Compliance issues: If you don’t transition by the deadline you could miss payments or not meet new timelines under the new Payday Super reform.
• Penalties: Not meeting new regulatory changes may incur fees and charges.
• Possible increased administrative burden: You’ll need to replace SBSCH with a clearing house via your payroll software, a super fund provider, or commercial clearing house to pay your employee super contribution. The implementation and setup may require time and it’s important this is completed by the 1 July 2026 deadline.
• Cashflow changes: With the shift to more frequent super contributions tied to pay runs you’ll need to manage cashflow smarter. The legacy quarterly model is going away.

What small businesses need to do

Here’s a practical roadmap to ensure your business is ready well before June 2026:

1. Check your current setup

First determine if you currently use the SBSCH for your super payments. If yes, you’ll need to pick an alternative. If not, you may still face changes in how you pay super and integrate with your payroll software.

2. Explore and select an alternative

You’ll need to move away from SBSCH and adopt a new method. Your options typically include:

• A payroll software platform with integrated super payment functionality (often combining payroll and super under one solution).
• A clearing house provided by a super fund.
• A commercial third-party clearing house service (these may carry subscription or transaction fees).

3. Prepare your system, data and process

• Ensure all employee fund details (member numbers, fund names, bank account details etc.) are current and accurate as errors can cause failed payments.
• Test the super payment process ahead of transition.
• Document your process and train the relevant staff so they understand the new workflow.
• Consider cashflow implications as Payday Super will trigger more frequent super contributions. Be prepared by running more frequent super contributions over time.

4. Set a go-live date ahead of the deadline

Don’t leave the change until June 2026. Ideally:

• Select and implement your alternative solution now.
• Run test pay runs and super contributions in the new process.
• Plan to be fully operational well before 30 June 2026.

5. Monitor legislation and changes

Keep an eye on updates from the ATO as SuperStream, Payday Super and other reforms may impact your obligations further.

What this means for your business

By acting early you’ll avoid potential last-minute disruption, fees, staff training or non-compliance risks. You’ll also position your payroll and super processes for the future: greater integration, improved automation, and fewer manual steps. For small to mid-sized Australian businesses this transition is an opportunity to modernise, reduce risk, and streamline operations.

Ready to future-proof your payroll & super?

If you’re looking for a reliable, integrated cloud payroll solution that can automate your super contributions through their super clearing house and keep you compliant with the upcoming changes CloudPayroll can help. Designed for Australian small and mid-sized businesses CloudPayroll simplifies pay runs, super payments, and compliance so you’re ready for the SBSCH closure and the Payday Super reform. Explore CloudPayroll today to see how your business can transition smoothly.