Compliance
Transitioning From the Small Business Superannuation Clearing House: What Employers Must Do Now
The SBSCH closes 1 July 2026. Here’s how small businesses should prepare to avoid disruptions in super guarantee payments.
By NomadicTax Research Team • 5-8 min read • June 22, 2026
## Why the SBSCH is Closing
From **1 July 2026**, the Small Business Superannuation Clearing House (SBSCH) will close permanently under the **Payday Super** reforms. Employers who previously used the SBSCH will need to transition to alternative payment methods. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
## What Employers Should Do Before 1 July 2026
- **Download all transaction history**: Employers must download all super payment and employee detail records from the SBSCH before 11:59 pm AEST, 30 June 2026. After that date, the service and its records will no longer be accessible. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
- **Select an alternative payment method**: Options include functionality in your payroll software, commercial clearing houses, or services directly offered by large super funds. Be ready to adopt a method that meets the requirements of Payday Super. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
- **Ensure your payroll system supports new code**: Under Payday Super, “Qualifying Earnings” (QE) must be reported under a new code “Q” via Single Touch Payroll (STP). Employers must undertake system updates to capture QE correctly. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## How the New “Payday Super” Rules Work
- **Payment timing**: Super Guarantee (SG) contributions must be paid **on payday**, and must be **received by the super fund within 7 business days**. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Calculation base changed**: The base for SG contributions becomes **12% of Qualifying Earnings**, which include ordinary time earnings and other payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Fund responsibilities**: Super funds have 3 business days to either allocate contributions or return them if something is incorrect. DSPs (Digital Service Providers) handling STP need to update their tools for the new framework. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Practical Examples
- **Employer A**, with a small team using SBSCH: must download all recent super payment history and match payout details so they can migrate to their payroll software solution.
- **Employer B**, relying on payroll outsourcing: need to confirm their DSP can support code “Q”, report qualifying earnings correctly and meet timing deadlines under 7 business days.
## Final Takeaways
The closing of SBSCH and introduction of Payday Super represent a significant shift in super guarantee administration. For compliance and to avoid penalties or surprises, small businesses and payroll providers should:
- Act **now**, not later — begin testing system changes and updating processes before 30 June 2026.
- Train payroll or HR staff on what “Qualifying Earnings” includes and how the timing of payments will change.
- Communicate changes to employees so they understand when their super is being paid and through which system.
Proper planning and timely system updates will help avoid compliance issues when these new rules take effect from **1 July 2026**.