Your guide to the ATO super clearing house closure

If you’re a small business owner who’s been happily using the ATO’s Small Business Superannuation Clearing House (SBSCH) to pay your employees’ super, we’ve got some news that might make you reach for another coffee. The free service that’s been making your life easier is closing down, and you’ll need to find an alternative before July 2026.

Don’t panic just yet – you’ve got time to sort this out, and there are plenty of options available. Let’s break down what’s happening and why.

What’s actually happening?

The government has announced that the SBSCH will be shutting down as part of the new "payday super" reforms. Here are the key dates you need to know:

• 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.

The closure coincides with new legislation that will require employers to pay super contributions at the same time as wages, rather than using the current quarterly system. Under these new rules, super contributions must reach your employees’ funds within seven days of each payday.

Why is the ATO pulling the plug?

The short answer is that the SBSCH was designed for the old quarterly super payment system, and it simply doesn’t fit with the new payday super world we’re heading into. The government has stated that “improvements in payroll software solutions over recent years provides employers with cost-effective and more fit for purpose options for paying superannuation contributions on payday”.

What’s this mean for your business?

If you’re one of the over 200,000 small businesses currently using the SBSCH, this change will impact you in several ways:

• You’ll need to find a new solution: This is the big one. You’ll need to research, select and set up a new way to pay super contributions well before the June 2026 deadline. The ATO is encouraging businesses to start this transition early rather than waiting until the last minute.
• Costs might increase: The SBSCH has been completely free to use. Many alternative solutions charge fees – whether that’s a per-transaction cost, a monthly subscription or fees built into payroll software. This is probably the most concerning aspect for small business owners who’ve been enjoying the free service.
• Timeframes will be tighter: Under the new rules to commence from 1 July 2026, super contributions must reach funds within seven days of payday.
• Your processes will change: Instead of batching super payments quarterly, you’ll need to integrate super payments into every pay run. This might mean learning new software or adjusting your current payroll processes.

While this might sound overwhelming, there are actually plenty of alternatives available, and many might even make your life easier once you get used to them. The key is starting your research early and not leaving it until the last minute.

Your options broadly fall into three categories: 

• payroll software with built-in super payment features; 
• clearing house services offered by super funds; and 
• commercial clearing house providers. 

Each has its own pros and cons depending on your business size, current systems and budget.

Payroll software with built-in super payments

If you’re already using payroll software for wages, this 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.

For example, Xero users can activate "Auto Super" to pay all employee super contributions automatically through their platform. Similarly, MYOB offers "PaySuper" functionality built into its payroll module.

The beauty of these integrated solutions is that once you’ve run payroll, paying super can be as simple as clicking a button. No double-entry of data, no separate portals to log into – it all happens in one place.

Super fund clearing houses

Most super funds offer free clearing house services to employers. AustralianSuper’s "QuickSuper" is a popular example – it’s a free, online portal where you can pay contributions to all your employees’ funds (not just AustralianSuper members) through one payment. Other major funds offer similar services.

These fund-sponsored clearing houses 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’ll need to use a separate web portal and either upload data from your payroll system or enter it manually.

Commercial clearing house providers

There are also independent commercial providers like SuperChoice, ClickSuper and Beam. These tend to offer more sophisticated features and can handle high volumes of transactions. 

Commercial providers often charge fees – either per transaction, per employee, or as a monthly subscription – but they typically offer robust compliance features and reliable processing.

How to choose the right option

• Start with what you already have: If you’re using payroll software, check if it has super payment functionality – this is often your simplest option.
• Consider the costs: Super fund clearing houses are typically free, while payroll software and commercial providers may charge fees. Factor in not just the direct costs, but the time savings from integration.
• Think about your workflow: Do you want everything in one system, or are you comfortable using separate portals? How many employees do you have, and how often do you pay them?
• Check the support: What happens if something goes wrong? Make sure your chosen provider offers decent customer service.
• Check the Product Register: Whatever you choose, make sure it’s on the ATO’s Product Register.
  This product register provides a randomised list of commercially available software products that have met security requirements. All products included on the register are authorised to use ATO digital wholesale services and send data directly to the ATO. Note, however, that the ATO does not recommend or endorse any of the products listed on this register. 

Getting started

The ATO recommends starting your transition early – don’t wait until 2026. This gives you time to test your new process and iron out any issues before the deadline.

Talk to your accountant or bookkeeper about what might work best for your business. You can also check the ATO’s “How to pay super” webpage for updated guidance.

While losing the free SBSCH might seem like a hassle, many of the alternatives offer features that could actually improve your payroll processes and make your admin life easier in the long run.

Source: https://softwaredevelopers.ato.gov.au/product-register 
www.ato.gov.au/businesses-and-organisations/small-business-newsroom/the-small-business-superannuation-clearing-house-is-closing