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Complete Guide on Small Business Superannuation Clearing House

SBSCH closure and Payday Super transition

If your business has been using the ATO’s free service to pay employee super, you need to act now. The Small Business Superannuation Clearing House has permanently closed and any business still relying on it to meet super obligations is already exposed.

This guide covers what the SBSCH was, why it closed, the key dates that matter, and exactly what your options are going forward, including how Xero supports the shift to Payday Super.

What is a Superannuation Clearing House?

A superannuation clearing house is a service that lets employers make a single super payment for all employees, regardless of which funds those employees belong to. Instead of sending separate payments to multiple super funds, you send one lump sum and the clearing house distributes contributions to each fund on your behalf.

For small businesses without a dedicated payroll team, this has always been a practical solution. One payment. One transaction to reconcile. One compliance obligation ticked off per quarter.

The ATO super clearing house, formally the Small Business Superannuation Clearing House (SBSCH), was the free, government-run version of this. It was available to businesses with 19 or fewer employees, or an aggregated annual turnover under $10 million. Since its launch in 2010, it was used by over 200,000 Australian small businesses to meet their quarterly super guarantee obligations.

Small Business Superannuation Clearing House (SBSCH) Closure

The SBSCH Is Closing — Key Dates Small Businesses Need to Know

The SBSCH closure is no longer upcoming – it’s done. Here’s the full timeline:

  • 1 October 2025 – New business registrations closed. No new businesses could sign up after this date.
  • 30 June 2026 – Final day for existing users to submit contributions. The service accepted lodgements until 11:59 pm AEST.
  • 1 July 2026 – The SBSCH is permanently closed. It can no longer be used to make payments or access records.

One critical point the ATO has confirmed: super guarantee contributions for the quarter ending 30 June 2026 remain due on 28 July 2026. As the SBSCH will no longer be available, you should make these payments through an alternative method of payment. If you do not meet this date, you will need to lodge a super guarantee statement and pay the super guarantee charge.

If you haven’t already downloaded your SBSCH records, that data is now gone. The ATO confirmed records are no longer accessible after closure.

The SBSCH Is Closing — Key Dates Small Businesses Need to Know

The closure is linked to broader reforms in the superannuation system. The government is moving towards Payday Super, where employers will be required to pay superannuation at the same time as salary and wages, rather than quarterly.

The SBSCH was built for a quarterly payment model. Under Payday Super, businesses will not only need to shift from quarterly superannuation payments to paying super in line with payday, but they also need to ensure contributions reach employee funds within seven business days. The SBSCH simply wasn’t designed to support that frequency or those timeframes.

Why Super Clearing Houses Matter for Small Business

For small business owners, super compliance carries real financial risk. The ATO’s Superannuation Guarantee Charge – the penalty for missing or late contributions – includes the unpaid super amount, 10% interest per annum, and an administration fee of $20 per employee per quarter. Importantly, the SGC is not tax-deductible, which makes it one of the most expensive compliance failures a business can face.

A clearing house simplifies this by centralising payment. One transaction covers all funds, the payment is timestamped, and your SuperStream obligations are met. 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.

From 1 July 2026, the compliance stakes are even higher. Super must now be paid on or before the day wages are paid, not quarterly. This changes cash flow planning, payroll processes, and the tools your business needs to stay compliant.

Transitioning from the Small Business Superannuation Clearing House

If you haven’t transitioned yet, here’s where to start.

Review your current payroll setup

Identify what software you’re currently using and whether it already includes super payment functionality. Many cloud payroll platforms – including Xero – have built-in super payment tools that process contributions alongside payroll automatically.

Assess your alternative options

Switch to a SuperStream-compliant payment method, such as payroll software with built-in super, which automatically calculates contributions and processes payments from the same platform you use for payroll. If you’re not using payroll software, employer clearing house portals from major super funds are another option.

Test before you commit

Test your new super payment system before you stop using the SBSCH to confirm that contributions reach the correct funds, amounts calculate accurately, and reporting meets SuperStream requirements. If you’ve already stopped using the SBSCH, set up and test your new system as soon as possible.

Update your payroll calendar

Quarterly super is gone. Your payroll process now needs to include super as a standard component of every pay run, not a separate quarterly task.

What Are Your Alternatives? (Including How Xero Supports Payday Super)

There is no government replacement for the SBSCH. The SBSCH is the sole government-operated clearing house, and no replacement is planned. All alternatives operate on commercial or subsidised models.

Your main options are:

Payroll software with integrated super. For businesses already using cloud payroll software, this is the most seamless path. Platforms like Xero calculate and submit super alongside payroll automatically, with contributions processed through a built-in SuperStream-compliant clearing house.

Super fund employer portals. Some funds, including AustralianSuper, offer free clearing house portals for employers. These handle contributions to multiple funds and are SuperStream-compliant. They’re a practical no-cost option if you’re not using integrated payroll software.

Commercial clearing houses. Third-party SuperStream-compliant services are available, though most charge a fee. These suit businesses with more complex payroll structures or those not yet using cloud payroll tools.

Xero Payday Super

For businesses on Xero, the transition is straightforward. Xero’s Auto Super feature calculates and submits super contributions automatically as part of every pay run – no separate clearing house, no manual lodgement. Contributions are submitted through a SuperStream-compliant clearing house built directly into Xero Payroll.

As a Xero Platinum Partner, Befree configures Xero Payroll for Payday Super compliance – reviewing payroll settings, confirming earnings categories, and making sure your setup processes super correctly every pay cycle.

For the most current guidance, refer to the ATO’s official SBSCH closure page and Xero’s SBSCH closure guide.

Your Super Obligations Haven't Changed – But How You Meet Them Has

The SBSCH is gone. The super guarantee isn’t. Every pay cycle is now a super obligation, and missing it triggers penalties that aren’t tax-deductible.

The businesses that navigate this smoothly are the ones that move early – getting the right payroll setup in place and testing it before the first post-closure pay run.

Befree’s payroll outsourcing team manages super contributions as part of your regular pay run, using Xero Payroll configured for Payday Super compliance, so your obligations are met every cycle, automatically.

Don’t leave super compliance to chance after the SBSCH closure. Book a call with Befree and get your payroll set up correctly from day one.

Frequently Asked Questions

What was the Small Business Superannuation Clearing House?
The SBSCH was a free ATO service that let eligible small businesses pay all employee super contributions in one transaction. It distributed payments to individual super funds on the employer’s behalf. It permanently closed on 1 July 2026.
The SBSCH closed permanently on 1 July 2026. New registrations stopped on 1 October 2025, and existing users could submit contributions until 11:59 pm AEST on 30 June 2026.
Super guarantee contributions for the June 2026 quarter are still due on 28 July 2026 and must be paid through an alternative SuperStream-compliant method. Missing this triggers the Superannuation Guarantee Charge — unpaid super, 10% interest, and a per-employee admin fee.
There’s no free government replacement. However, some super funds — including AustralianSuper — offer free employer clearing house portals. Payroll software with built-in super (like Xero) is another option, though software subscription costs apply.
Xero’s Auto Super feature processes super contributions automatically as part of each pay run, submitting them through a SuperStream-compliant clearing house built into Xero Payroll. It removes the need for a separate clearing house entirely.
Payday Super requires employers to pay super at the same time as wages, with contributions reaching the employee’s fund within seven business days. It applies to all Australian employers from 1 July 2026 and replaces the previous quarterly payment model.