ATO payday super SBSCH closure 2026 – what employers need to know

The ATO payday super SBSCH closure 2026 is approaching. Small businesses that use the Small Business Superannuation Clearing House (SBSCH) should prepare now. The free service ends on 1 July 2026. In addition, new registrations close on 1 October 2025.

The SBSCH lets employers make one quarterly super payment, and it then distributes funds to each employee’s super fund. However, payday super will align contributions with wages. As a result, payments will be more frequent and the SBSCH model will no longer fit.

Why the SBSCH is closing

Payday super aims to reduce unpaid and late super. Therefore, employers will be required to pay super at the same time as wages. This shift moves SG from quarterly batching to pay-cycle payments. Consequently, the SBSCH becomes redundant, and the ATO payday super SBSCH closure 2026 will take effect.

What changes on 1 July 2026

  • Employers will have seven days after each payday to ensure SG contributions reach the nominated super fund.
  • Quarterly batching through the SBSCH will cease. This means super payments will be tied directly to pay runs.
  • Payments will move into payroll software, commercial clearing houses, or services offered by super funds. As a result, payroll systems will become central to SG compliance.

Industry concerns and timing

Many support the reform because it can improve retirement outcomes. Even so, business and accounting groups have raised timing issues. Weekends, public holidays, and clearing house processing may tighten the seven-day window. For this reason, some suggest a phased approach to help small businesses adapt before the full effect of the ATO payday super SBSCH closure 2026. In contrast, superannuation industry groups argue the sooner it starts, the sooner employees benefit.

How to prepare now

  • Review your current SG workflow and note what must change when payday super starts. This step ensures you can act early rather than rush at the deadline.
  • Confirm your payroll software can calculate and pay SG each pay run, and check how it remits to funds. Many software packages will still be working on their solution at the moment.
  • Compare commercial clearing houses and super fund payment services for cost, integration, and processing times. Choose the most efficient option for your business.
  • Closer to the effective time, update payroll calendars, cut-off times, and approvals so contributions are initiated within seven days. In addition, factor in public holidays and weekends when scheduling pay runs. Holmans would recommend payment on the same day as wages with little or no delay.
  • Brief your payroll team and bookkeeper. Also, update procedures, checklists, and reminder tasks to reinforce the new requirements.
  • Monitor cash flow carefully. Since you will be paying per pay cycle rather than quarterly, this will change the timing of outgoings.

Key dates at a glance

  • 1 October 2025: New registrations for the SBSCH close. Therefore, no new users will be able to access the system from this date.
  • 1 July 2026: SBSCH closes and payday super begins. Consequently, SG must be paid within seven days of each payday.

Need help with compliance and setup?

The ATO payday super SBSCH closure 2026 will arrive faster than you think. Don’t wait until the deadline to find out your systems aren’t ready. Of course, our team at Holmans can guide you through every step — from planning your transition and configuring payroll software to implementing efficient, compliant payment workflows. Contact us today to ensure your business is ready to meet the new superannuation guarantee obligations from day one.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Wayne Staal - Holmans Chartered Accountant

Wayne Staal

Principal/Director of Holmans.
Skills include accounting and taxation, taxation minimisation, business improvement, client management, compliance requirements.

Specialist in Small to Medium Businesses and High Net Worth Individuals (Health Professionals and Professional Sportspersons). I like to guide people through the maze of complexity that is accounting and tax with good planning, forecasting and plain language. Once the compliance obligations are under control, I then like to help the owners improve the business bottom line.

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