The Australian Taxation Office (ATO) has announced that it will discontinue the Small Business Superannuation Clearing House (SBSCH), a service relied upon by approximately 250,000 Australian businesses for making quarterly superannuation payments. The SBSCH will cease operations on June 30, 2026, with new users unable to sign up starting October 1, 2025.
This change is linked to the proposed payday super reform, which aims to require employers to pay superannuation simultaneously with wages, thereby replacing the current quarterly payment schedule. The ATO’s current manual system is not adequately equipped to handle this increased frequency, prompting the shift toward a more efficient model.
Under the payday super initiative, aligning super payments with wage disbursements is believed to enhance transparency, streamline payroll processes, and minimize the risk of missed or late payments. Employees would benefit from increased assurance that their retirement savings are being managed accurately and promptly.
For businesses currently utilizing the SBSCH, transitioning to tools like Xero could facilitate this change. Xero’s auto super feature allows seamless calculation and payment of super contributions directly through its payroll system, thereby enhancing compliance and reducing administrative burdens. Recent enhancements to Xero’s payroll capacity also aim to assist even the smallest businesses in adapting to these upcoming changes.
The SBSCH will remain functional until June 2026, with the final quarterly payment for the March 2026 quarter. Businesses are encouraged to transition to alternatives like Xero’s auto super before the closing date.
Why this story matters:
- The closure of the SBSCH and introduction of payday super reforms could significantly impact how Australian businesses manage employee superannuation contributions.
Key takeaway:
- Businesses should transition to integrated payroll solutions that align with the new superannuation requirements to maintain compliance and efficiency.
Opposing viewpoint:
- Some small businesses may view the transition as an added regulatory burden, complicating their payroll systems and necessitating additional training and resources.
