Closure of the Small Business Super Clearing House (SBSCH) brings super guarantee changes for employers
Significant changes are coming to how and when employers must pay their employees’ superannuation. From 1 July 2026, employers will be required to pay employees their super guarantee (SG) on payday, at the same time as their salary and wages (instead of quarterly).
These reforms won’t only effect how often super is paid, but also how it’s calculated and how small businesses process super payments.
Beginning 1 July 2026, SG will be calculated as 12% of an employee’s Qualifying Earnings (QE), which is a new term that brings together Ordinary Time Earnings (OTE) and other payments. On top of SG’s requirement to be paid on payday, it must also be received by the superfund within 7 business days (unless an extended deadline applies, such as for new employees).
Alongside these changes comes the closure of the Small Business Superannuation Clearing House (SBSCH), an ATO service which eligible businesses could historically use to pay employees superannuation contributions in one single transaction, which the ATO would then distribute to individual employee superfunds.
The closure of the SBSCH is due to the move to Payday Super, which requires more frequent, almost real-time payments. The introduction of Payday Super aims to help employees grow their retirement savings faster and reduce the risk of unpaid or late super, as well as making it easier for employers to ensure they’re meeting their obligations.
Key Changes to Super Guarantee
| Current rule | New rule as of 1 July 2026 | |
| 1. Super guarantee payments | Must be received by a superfund within 28 days of the end of the quarter, but can be paid quarterly or more frequently (e.g. monthly). | Must be paid to an employee’s superfund at the same time as paying qualifying earnings (QE) and received by the superfund within 7 business days. |
| 2. Super guarantee contribution dates | – 28 October – 28 January – 28 April – 28 July | Must be cleared in the fund within 7 business days of payday. Some exceptions may apply (including for new employees). |
| 3. Basis for super guarantee calculation | Super guarantee is calculated as 12% of Ordinary Time Earnings (OTE). | Super guarantee is calculated as 12% of Qualifying Earnings (QE), which includes OTE and other payments. |
| 4. Super guarantee charge (SGC) | Currently applies when amounts aren’t received by a super fund within 28 days of the end of a quarter. Calculated based on salary and wages. Includes interest at 10% per annum. Includes a flat administration fee. Self-assessed and requires the lodgment of an SGC statement. A tax deduction can’t be claimed for the payment of SGC. | Will apply when amounts aren’t received by a superfund within 7 business days of payday (excluding eligible exemptions, such as for new employees). Calculated based on QE. Includes interest that compounds daily at the general interest charge rate. Includes an administrative uplift which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure. Assessed by the ATO. SGC is tax deductible. |
| 5. Penalties | Maximum of 200% of the SGC, which can be remitted in part or in full. | 25% or 50% of the unpaid SGC depending on any prior penalties. |
| 6. Single Touch Payroll (STP) | Report either OTE or super liability. | Report both QE and super liability. |
| 7. Small Business Superannuation Clearing House (SBSCH) | Closed to new users as of 1 Oct 2025. Existing users will have access to the service until 30 June 2026. | SBSCH is no longer available. All users must transition to an alternative option to pay their employees’ super. Visit: ato.gov.au/howtopaysuper |
| 8. Employee data and payment processing | Super payments may take a number of days to be received by a super fund. Employers receive incomplete or inaccurate data from their employees, which can cause errors and delay payments when trying contribute to a superfund. Employers are unaware of key changes to large superfund’s details. | SuperStream data and payment standards will allow payments to be made via the New Payments Platform and provide better error messaging to help employers address errors faster. A new member verification request will enable employers to confirm that a superfund can match their employee contribution to the superfund for the first time and will accept a contribution for them. Improvements to the Fund Validation Service will give employers advance notice of key changes to large superfund’s details (e.g. fund mergers) that could affect their ability to make contributions to superfunds. |
I’m An Employer Using The SBSCH, What Do I Do Now?
If you currently use the SBSCH, you should start preparing now. The ATO recommends that the March 2026 quarter be the final quarter you use the SBSCH. Moving early reduces the risk of late payments and gives you time to ensure your systems are working correctly.
If you currently use the SBSCH, you need to switch to an alternative to pay your employees’ super guarantee (SG) before 1 July 2026.
You will need to:
- Choose an alternative super payment method
- Transition before 1 July 2026
- Download all super records before the service closes
Alternative options to the SBSCH may include:
- Using your existing payroll software if it includes functions that support SG payments
- Switching to a commercial clearing house
- Larger superfunds may have online payment services available
No need to wait until the deadline! Employers can start paying super alongside salary and wages now. Starting early will ensure your employees receive their entitlements, your business remains compliant and helps avoid unnecessary penalties, well before the 1 July deadline.
Still Need Help?
Payday Super represents a major shift in employer obligations. At BISCosgrove, we know a thing or two about small business. To learn more about Payday Super and what it means for you and your business, visit Payday Super.
If you’re unsure how these changes affect your business, especially if you currently use the SBSCH, get in touch with one of our expert accountants or advisers today. We can review your payroll systems, help you navigate the switch to PayDay Siper, and transition to a compliant super payment solution ahead of these changes.
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The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
