If you’re a small business owner using the ATO’s Small Business Superannuation Clearing House (SBSCH) to pay your employees’ super, big changes are on the horizon. The free service that’s been a simple, reliable tool for over 200,000 small businesses is closing down, and you’ll need to make the switch to an alternative before July 2026.

The closure is part of the government’s new “payday super” reforms, which are designed to ensure employees receive their super contributions at the same time as their wages, rather than on a quarterly basis.

Key Dates You Need to Know

• 1 October 2025 – No new businesses can register for the SBSCH
• 30 June 2026 – Last day existing users can access the SBSCH
• 1 July 2026 – SBSCH closes permanently

Why the SBSCH is Closing

The SBSCH was designed for the old quarterly super system. Under the new payday super rules, employers must ensure super contributions reach employees’ funds within seven days of payday. Because the SBSCH doesn’t align with this faster payment cycle, it’s being phased out.

What This Means for Your Business

If you’re currently using the SBSCH, here’s how the closure could affect you:

• New solution required – You’ll need to move to another platform before 30 June 2026.
• Potential costs – The SBSCH is free, but many alternatives may charge fees.
• Tighter timeframes – From July 2026, super must be paid within seven days of payday.
• Process changes – Super payments will need to be integrated into every pay run.

Alternatives to the SBSCH

1. Payroll software with built-in super payments
   • Many popular accounting and payroll platforms include integrated superannuation features.
   • Once you run payroll, paying super is often as easy as clicking a button.
   • This option is seamless if you already use payroll software.
2. Super fund clearing houses
   • Most major super funds provide their own clearing house service for employers, often free of charge.
   • You can pay contributions to multiple funds in one place, though you’ll likely need to upload payroll data or enter it manually via a web portal.
3. Commercial clearing house providers
   • Independent providers offer advanced features and can handle high transaction volumes.
   • They usually charge fees but provide robust compliance tools and reliable processing.

The ATO’s Advice

The ATO strongly recommends starting your transition well before 2026. By making the switch early, you’ll have time to test your new system, train staff, and ensure your processes are running smoothly before the new payday super rules take effect.

FAQs

1. What is payday super?
   Payday super is a reform requiring employers to pay super contributions at the same time as wages. Contributions must reach employees’ super funds within seven days of each payday.
2. Why is the SBSCH closing?
   The SBSCH was built for the quarterly payment system. With super moving to payday payments, the SBSCH can’t meet the new requirements, so it’s being retired.
3. What happens if I don’t switch before July 2026?
   From 1 July 2026, you won’t be able to use the SBSCH, and you’ll risk being non-compliant with superannuation laws if you don’t have an alternative system in place.
4. Are there free alternatives?
   Yes. Many super funds offer free clearing house services to employers. However, you may need to manually upload or enter payroll information.
5. Which option is best for my business?

• If you already use payroll software, an integrated solution may be the easiest.
• If you want a no-cost option, consider your employees’ super fund clearing house.
• If you need advanced features, a commercial provider may be worth the investment.

6. Should I wait until 2026 to switch?
   No. The ATO recommends transitioning early to avoid last-minute issues and to give you time to test your new system.

Next Steps: Review your payroll process, compare clearing house options, and start your transition now to avoid stress in 2026.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

As a business owner, staying up-to-date with payroll changes is essential to avoid compliance issues, penalties, and unnecessary costs. Here are the key payroll updates businesses need to prepare for:

1. Wage Theft Laws (Effective from 1 January 2025)

Under the new laws, underpaying wages is now considered a criminal offence, with severe penalties for businesses that intentionally underpay their employees.

2. Right to Disconnect (From 26 August 2024 for large businesses and 26 August 2025 for small businesses)

Employees will have the right to ignore after-hours work communication unless it is urgent. This new law ensures employees are not expected to be available outside of their regular work hours.

3. ATO GST Reporting Update (From 1 April 2025)

Around 3,500 small businesses with a history of late lodgement, non-payment, or incorrect GST reporting will be moved from quarterly to monthly GST reporting. Affected businesses need to review their bookkeeping systems and workflows to ensure compliance with the new reporting schedule.

4. Superannuation on Parental Leave (From 1 July 2025)

Parental leave payments will include superannuation for eligible employees, helping to boost retirement savings during a time of leave.

5. Payday Super (From 1 July 2026)

Superannuation must be paid with wages, rather than quarterly, ensuring employees receive their super contributions more frequently.

6. Casual Employment Reforms (From 26 August 2024)

Casual employees who meet certain conditions must be offered permanent employment. Businesses should review casual contracts and ensure they comply with the new regulations.

What Does This Mean for Your Business?

These changes highlight the importance of reviewing your contracts, payroll software, and reporting processes. Make sure to act now to ensure your business complies with the new laws.

6 Payroll Mistakes That Cost Businesses Time and Money

Avoiding these payroll mistakes is crucial to prevent delays, penalties, and financial headaches:

1. Missing Superannuation & Payroll Tax Updates
   The superannuation rate will increase to 12% from 1 July 2025, and payroll tax thresholds vary by state. Businesses must update payroll systems to reflect these changes and avoid penalties.
2. Errors in Payroll Reporting & STP Submissions
   Incorrect employee details, duplicated payroll entries, or missing adjustments can lead to ATO compliance issues. Regularly review payroll reports and keep software updated to avoid errors.
3. Misclassifying Employees & Incorrect Wage Payments
   With new casual employment laws effective from 26 August 2024, businesses must review contracts and ensure employees are correctly classified. Misclassifying workers can lead to backpay claims, disputes, and penalties.
4. Late or Incorrect Employee Payments
   Payroll delays or incorrect payslips lead to employee dissatisfaction, legal issues, and Fair Work claims. Ensure wages, overtime, bonuses, and super contributions are processed accurately and on time.
5. Failing to Secure Payroll Data
   Payroll data is a prime target for cyber threats. Implement multi-factor authentication, data encryption, and security audits to protect sensitive information.
6. Incorrect Termination & Redundancy Payments
   Final pay must include all accrued leave and redundancy payouts. Mistakes in termination payments can lead to disputes, fines, and Fair Work investigations.

Important EOFY Payroll Deadlines for Businesses in 2025

To avoid penalties, ensure you’re aware of key payroll deadlines:

• Super Guarantee Rate: Increases to 12% from 1 July 2025. Update your payroll settings to reflect this change.
• Superannuation Guarantee Contributions: Must be received by employees’ super funds by the quarterly due dates (28th of each month following the end of the quarter).
• BAS (Business Activity Statement):
  • Monthly BAS: Due 21st of the following month.
  • Quarterly BAS: Due 28th of the month following the quarter (i.e. July, October, February, and April).
• Monthly GST Reporting: If you’ve been notified by the ATO, businesses may now need to lodge GST monthly from 1 April 2025.
• Annual Payroll Reconciliation: Complete by 14 July.
• Single Touch Payroll (STP) Reporting: Must be submitted each payday or at the latest, on the day of payment.
• PAYG Withholding: Reported and paid by the 21st of the following month.
• Award and Wage Changes: Effective from 1 July, so ensure payroll systems are updated.

FAQ:

Q: What is wage theft, and how can I avoid it?
A: Wage theft refers to intentionally underpaying employees. To avoid it, ensure your payroll system is up-to-date with correct wages, entitlements, and superannuation contributions. Regularly audit your payroll and ensure compliance with minimum wage laws.

Q: How will the ATO GST reporting update affect my business?
A: Businesses with a history of late lodgements or incorrect GST reporting will be moved from quarterly to monthly GST reporting. Ensure your bookkeeping system is adjusted to accommodate this change, so you can meet the new deadlines.

Q: What happens if I miss the EOFY payroll deadlines?
A: Missing EOFY payroll deadlines can result in penalties and fines. Make sure to submit BAS, STP, and superannuation payments on time, and keep track of any changes to tax rates and superannuation contributions.

Q: Do I need to update payroll systems for the superannuation rate increase?
A: Yes. The superannuation rate increases to 12% from 1 July 2025. Ensure your payroll system reflects this change to avoid underpayments.

Conclusion

In 2025, significant payroll changes will affect businesses, from new wage theft laws to updates in GST reporting and superannuation. It’s crucial for business owners to stay ahead of these changes by reviewing contracts, updating payroll systems, and meeting all necessary deadlines. By avoiding common payroll mistakes and staying compliant with new regulations, you can ensure your business remains on track and avoids costly penalties. If you’re unsure about how these changes impact your business, it’s advisable to seek professional advice to ensure full compliance.

—————BOOK YOUR EXCLUSIVE 15 MINUTE ZOOM CONSULTATION————-

We offer a 15-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection. To Book an Appointment simply click here and pick a time and date.

BOOK YOUR ZOOM APPOINTMENT HERE

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

---

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.