Payday Super | ATO Small Business Super Clearing House
The Federal Government is introducing significant reforms to the way employers must pay superannuation. These changes aim to improve the timeliness of Superannuation Guarantee (SG) payments and strengthen compliance across the system. As your accountants, we want to ensure you understand what is changing, when it takes effect, and the steps your business may need to take.
Please note these changes apply to ALL employers with no exceptions – that includes where a company is paying a related party or director.
1. Introduction of Payday Super – Effective 1 July 2026
From 1 July 2026, employers will be required to pay superannuation at the same time as wages, rather than quarterly. This reform is known as Payday Super.
What This Means for Employers
Super contributions must be received by the employee’s superannuation fund within 7 business days after each payday.
Limited exceptions apply, such as the first contribution for a new employee, which must be received within 20 business days.
2. Timing of Payments Under Payday Super
Under the new rules super must be paid:
On each payday, aligned with payroll cycles.
No later than 7 business days after the wages payment is made.
Key notes on timing:
Super is only considered “paid” when received by the fund, not when sent.
If you use a clearing house or software platform, ensure processing time is factored into your payroll cycle.
Super funds will be required to allocate contributions to the employee's account within 3 business days of receiving them (down from 20 days).
3. Closure of the ATO Small Business Superannuation Clearing House (SBSCH)
The ATO Small Business Superannuation Clearing House will permanently close on 1 July 2026 as part of the transition to Payday Super.
Key Dates to Note
1 October 2025 – New registrations for the SBSCH closed.
30 June 2026 – Final day existing users can access the SBSCH or make payments.
1 July 2026 – SBSCH shuts down completely and cannot be used for any super payments.
Action Required
If you currently use the ATO’s clearing house:
You must transition to an alternative super payment solution before 1 July 2026.
Download all SBSCH records before 30 June 2026, as the system will no longer be accessible.
4. Alternative Super Payment Options After the SBSCH Closes
With the SBSCH shutting down, employers will need to move to a compliant payment method that supports Payday Super.
Available Alternatives
Payroll software with integrated superannuation payments
Many payroll systems—such as Xero, MYOB, and QuickBooks—offer automated SuperStream‑compliant superannuation payment services.Commercial superannuation clearing houses
These offer consolidated payment processing and reporting.Clearing services offered by major super funds
Some funds provide employer portals with integrated payment functionality.
Xero Automatic Superannuation as an Option
Xero’s built‑in superannuation payment facility is a popular option among employers, enabling automated SuperStream‑compliant transfers that align seamlessly with payroll cycles including an integrated direct debit facility. If you are already using Xero you should consider utilising this function to ensure you comply with the changes. It is simple to setup and easy to use.
5. What You Should Do Now
To prepare for the 1 July 2026 start date, we recommend:
Review your current superannuation payment process and identify if it relies on the SBSCH.
Speak with your payroll software provider to ensure it supports the new Payday Super rules.
Update your payroll procedures to incorporate super payments each pay cycle.
Transition to a new super payment method well before mid‑2026 to allow time for testing and adjustments.
Ensure employee super fund details are accurate to avoid delayed or rejected payments.
We’re Here to Help
These changes are significant, and early preparation will help ensure a smooth transition. If you would like assistance reviewing your current payroll processes or selecting a new clearing house or payroll solution, please contact our office.