Notwithstanding that the main superannuation change for 2026 is the introduction of Payday Super, which requires employers to pay Superannuation Guarantee (SG) contributions on the same day they pay their employees’ wages, starting from 1 July 2026. This reform aims to reduce unpaid super, improve the tracking of contributions for employees, and assist with payroll management for employers.
Another change to superannuation is, if you are a small business owner who’s been using the ATO’s Small Business Superannuation Clearing House (SBSCH) to pay your employees’ super, the free ATO service that’s been making your life easier is closing down, and you’ll need to find an alternative before July 2026.
The government has announced that the SBSCH will be shutting down as part of the new “payday super” reforms. Here are the key dates:
- 1 October 2025: no new businesses can register for the SBSCH;
- 30 June 2026: last day existing users can use the service; and
- 1 July 2026: the SBSCH closes completely.
As noted in the opening paragraph, the closure coincides with new legislation that will require employers to pay super contributions at the same time as wages (payday super), rather than using the current quarterly system. Under these new rules, super contributions must reach your employees’ funds within seven days of each payday.
The ATO is pulling the plug because the SBSCH was designed for the old quarterly super payment system, and it simply does not fit with the new payday super world we’re heading into.
If you are one of the over 200,000 small businesses currently using the SBSCH, this change will impact you in several ways:
- You will need to find a new solution before the June 2026 deadline.
- Costs might increase – the SBSCH is free to use, but many alternative solutions charge fees.
- Timeframes will be tighter – under the new rules from 1 July 2026, super contributions must reach funds within seven days of payday.
- Your processes will change because you will need to integrate super payments into every pay run.
If you are already using payroll software for wages, payroll software with built-in super payments might be your easiest transition. Many popular accounting packages now include super payment features that let you pay contributions directly through the same system you use for payroll. The beauty of these integrated solutions is that once you have run payroll, paying super can be as simple as clicking a button.
Most super funds also offer free clearing house services to employers. These typically require you to register as an employer with that fund, but then you can manage contributions to multiple funds in one place. The main trade-off is that you will need to use a separate web portal and either upload data from your payroll system or enter it manually.
There are also independent commercial providers. These tend to offer more sophisticated features and can handle high volumes of transactions. Commercial providers often charge fees, but they typically offer robust compliance features and reliable processing.
The ATO recommends starting your transition early – do not wait until 2026. This gives you time to test your new process and iron out any issues before the deadline.
Always consult with the ATO and your Tax professional. Information provided herewith from the BIA’s Tax advisors, KS Black & Co, Stuart Cameron can be contacted on scameron@ksblack.com.au
Keep a watch out for this fortnightly finance piece in eNews, and watch out for the next edition of the Finance Matters piece, where our Finance Partner MitchCap Finance continues with up-to-date talks about the finance market.
