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SBSCH Is Closing: What Employers Must Do Now

If you currently use the ATO’s Small Business Superannuation Clearing House (SBSCH), change is coming. As part of Australia’s proposed Payday Super reforms, the SBSCH has closed to new registrations as of 1 October 2025, then closing fully and will stop accepting contributions from 1 July 2026 (existing users can keep using it up to 30 June 2026).

After the SBSCH closing date, employers will need a SuperStream-compliant alternative — typically payroll software with integrated super payments (such as Xero). Meanwhile, Payday Super is slated to require employers to pay super at the same time as wages, with contributions received by the super fund within seven calendar days of each pay date. These measures are progressing but not yet law at the time of writing; however, the direction of travel is clear, and preparation now will save headaches later.

What’s changing — and why it matters

Under the current rules, most employers pay Superannuation Guarantee (SG) quarterly. Payday Super shifts this rhythm so that SG is aligned to each pay cycle (weekly, fortnightly, or monthly). Critically, each pay that includes Ordinary Time Earnings (OTE) creates a new 7-day due date for the contribution to arrive in the employee’s fund — not just be sent — so timing and payment rails matter. To support more frequent payments, government and regulators have flagged updates to SuperStream data and payment standards, improved error messaging, and the ability to leverage faster payment methods (e.g., NPP). Super funds’ window to allocate or return unallocated contributions is also proposed to drop from 20 business days to 3, increasing the need for accurate member data. Employers may also see STP enhancements, such as reporting OTE and super liability fields together, improving the ATO’s ability to match data and intervene earlier on compliance.

In parallel, the SBSCH is being retired because it was built for a quarterly world. With super payable per pay run and due to arrive within seven days, most employers will be better served by integrated payroll + super solutions that can automate calculations, lodge data in SuperStream format, and move money quickly. That’s why new SBSCH registrations closed from 1 October 2025, and all payments via the SBSCH cease from 1 July 2026.

Key dates at a glance

• 1 October 2025: No new registrations for the SBSCH.
• 30 June 2026: Last day for existing users to make contributions via the SBSCH.
• 1 July 2026: SBSCH closing for good; contributions must be made via other compliant systems. Payday Super scheduled to commence (subject to legislation). Contributions must be received by funds within 7 calendar days of payday.

Step-by-step: How to get your business ready

1) Review your payroll stack (STP Phase 2 ready)

Confirm you’re on STP Phase 2 and that your software can calculate and submit super per pay run, not just quarterly. Ask your provider about their Payday Super roadmap: support for 7-day arrival, SuperStream updates, etc. Clarify whether the system will help you validate member details to reduce unallocated contributions (important given the proposed 3-day return deadline).

2) Switch on “Auto Super” (integrated clearing) early

If you use Xero, MYOB, or similar, enable the integrated super payments feature. Complete direct-debit or payment authorisations and run a low-value test to ensure funds flow correctly from your payroll to each super fund. Integrated workflows reduce manual handling, ensure SuperStream compliance, and keep everything in one place — critical as payment frequency increases.

3) Plan your SBSCH transition

If you currently rely on the SBSCH, set a cutover date well before 30 June 2026 to avoid last-minute issues. Document your new process (who approves, when runs occur, how exceptions are handled) and update internal controls. Remember: after 1 July 2026 the SBSCH will be closing and won’t accept contributions — attempts after the deadline may be rejected, risking SG Charge (SGC) exposure.

4) Clean up employee super data (stapled fund + choice)

Use the ATO’s Stapled Super Fund service during onboarding to pre-populate existing fund details. The proposed settings may allow you to present an employee’s stapled fund more seamlessly, giving employees clearer visibility over their choice. Keep member details current to minimise unallocated contributions, which under proposals must be returned or allocated within 3 business days.

5) Re-forecast cash flow

Shifting from quarterly outflows to per-pay-cycle super requires a cash-flow rethink. Update your 13-week rolling forecast and scenario models to reflect weekly/fortnightly super payments and the 7-day arrival requirement. Consider aligning pay dates to banking cut-off times and public holidays so payments don’t slip past the arrival due date.

6) Strengthen compliance monitoring

Expect refinements to SGC rules aligned to more frequent payments and greater ATO visibility through STP + fund reporting matching. Build a monthly compliance checklist: verify that each pay run’s super has arrived at funds within seven days, review any error messages from your gateway, and reconcile exceptions within your HR/payroll system.

7) Communicate with your team

Tell employees when super will be paid more frequently and, if supported by your software, show super amounts on each payslip. Clear internal communication reduces queries and builds trust during the transition. After all, it’s a win for employees!

Practical pitfalls to avoid

• Cutover at year-end: Don’t leave the transition to late June 2026 — gateways, funds and software support desks will be flooded. Aim for Q1 2026 at the latest (but earlier is better).
• “Paid vs received” confusion: Under Payday Super, the arrival at the fund within 7 calendar days is what matters. Build in banking buffers.
• Unallocated contributions: With only 3 business days for funds to allocate/return, poor member data can create a compliance scramble. Prioritise data hygiene now.
• Ignoring STP changes: If your STP file isn’t mapping OTE and super liability correctly, you risk incorrect reporting — work with your software provider and adviser early.

How we can help

Our CFO2GO team partners with businesses to implement payroll and super process upgrades, select or configure integrated super gateways, tidy employee data, and embed cash-flow and compliance rhythms that fit the new regime. That way, you remain compliant and confident when 1 July 2026 arrives.

Payday Super is approaching fast, and the SBSCH is closing. Even though the reform remains not yet law, the ATO and Treasury guidance is clear enough to act now: upgrade your payroll setup, switch on integrated super, clean up data, and re-shape your cash flow and controls. If you’d like hands-on help to plan and execute your transition, contact McKinley Plowman’s CFO2GO team on (08) 9301 2200. We’ll help you get ready — on time, on budget, and with confidence.

Further Reading:

• Payday superannuation | Australian Taxation Office
• Payday Super factsheet
• The Small Business Superannuation Clearing House is closing | Australian Taxation Office
• SBSCH Closing: What Your Small Business Needs to Do | Xero AU

written by:

Megan George