If you've been using the ATO Small Business Super Clearing House to pay your employees' super, you've got two things changing on 1 July 2026. Not one.
Most employers are across Payday Super by now. Far fewer have clocked that the free ATO tool many of them have been quietly relying on for years is shutting down on exactly the same date.
The SBSCH was built for a quarterly super world. It can't support the higher-frequency payments Payday Super requires. So from 1 July, it's gone.
Employers who haven't set up an alternative will have no way to process super contributions on time from their very first pay run under the new rules.
This article covers what the SBSCH is, who's affected, and what you need to do before the deadline.
The Small Business Super Clearing House is a free ATO service available to employers with 19 or fewer employees, or an annual turnover of less than $10 million.
It works by letting you make a single super payment to the ATO, which then distributes the money to your employees' individual super funds. For small businesses without sophisticated payroll software, it's been a practical and cost-free way to meet super obligations.
A lot of businesses have been using it for years without giving it much thought. That's about to change.
Why Is the SBSCH Closing in 2026?
The SBSCH was designed around the old quarterly super model — where employers had up to 28 days after each quarter end to make contributions. That timeframe allowed for the processing lag inherent in the clearing house model.
Under Payday Super, super must reach the fund within 7 business days of each payday. The SBSCH's processing and settlement timeframes aren't compatible with that requirement. The ATO has confirmed it will not be updated to support Payday Super, and will close on 1 July 2026.
Which Employers Need to Act Before 1 July?
Any employer currently using the SBSCH to process super contributions will need to transition to an alternative before 1 July. This includes:
Small businesses across all industries that have relied on it as a free, low-effort option. NDIS and care sector providers who may not have reviewed their super payment setup for some time. Any employer whose payroll software doesn't currently have super payment functionality built in.
If you're not sure whether you're using the SBSCH, log into the ATO Business Portal and check your super payment history.
SBSCH Alternatives: What to Use Instead
From 1 July, super contributions must be made through a SuperStream-enabled solution. SuperStream is the ATO's standard for electronic super payments. It ensures contributions are processed digitally and reach the right fund in the right timeframe.
Your options include:
Your payroll software. Most modern payroll platforms have super payment built in directly through a connected clearing house. If your software supports this, it's the cleanest option. Super is calculated and submitted as part of each pay run, with no separate steps.
Pay Cat integrates with Beam for super payments, so contributions can be submitted, tracked, and managed directly inside the platform without downloading files or managing an external clearing house portal.
A commercial clearing house. If you're not ready to move to integrated payroll software, there are commercial SuperStream-enabled clearing houses available. Beam Super is one option worth looking at. They specialise in automated super payments and spoke at our recent Payday Super webinar if you want to hear more about how their service works.
Whichever path you take, don't leave the setup until the last week of June. Clearing houses have onboarding processes, and processing times matter more than ever when you're working to a 7-business-day window.
Settlement Timeframes: The Payday Super Detail Most Employers Are Missing
One thing worth flagging that doesn't get much attention: even after you've set up your new clearing house or payment solution, you need to understand how long it takes to process and settle contributions.
Under quarterly super, settlement delays were largely invisible. If a payment took 3–4 days to clear, it didn't matter. You had weeks of buffer.
Under Payday Super, that buffer is gone. If your clearing house takes 2–3 business days to settle, and your internal approval process takes another day, you're already at 3–4 days before the contribution has even left your account. That doesn't leave much room.
Ask your new provider upfront: how long does it take from submission to funds reaching the employee's super account? Build that into your payroll timeline before July.
BSCH Transition Checklist: What to Do Before 1 July 2026
Check whether you're currently using the SBSCH. Log into your ATO Business Portal and look at your super payment method.
If you are, choose your alternative now. Talk to your payroll software provider about whether super payment is built into your current setup, or whether you need to connect a clearing house.
Get your employee super fund details up to date. Failed payments from incorrect fund details will create compliance risk from your very first Payday Super pay run.
Test your new setup before July. Don't make 1 July your first live run under the new process.
How Pay Cat Handles Super Payments Under Payday Super
Pay Cat is payroll software built specifically for SCHADS Award compliance. We track every update to the award, we know how allowances and loadings interact with super obligations, and when our clients need support, they talk to real people who know their setup.
Pay Cat integrates with Beam for super payments. Super is calculated automatically within the payroll system, and contributions can be submitted, tracked, and managed directly inside Pay Cat. No file downloads, no separate clearing house portal, no manual status updates. When a payment goes through, the status updates inside the system. When something fails, you can see it and fix it in the same place.
For employers getting ready for Payday Super, having your super payment process fully inside your payroll system is exactly where you want to be.
If you want support reviewing your payroll setup ahead of 1 July, our team is here to help.
We ran a webinar with a guest speaker from Beam Super Clearing House covering Payday Super and super payment automation in detail. You can watch the replay here: Payday Super + Super Payment Automation
Pay Cat is payroll software built for SCHADS Award compliance and modern award employers. Our team supports payroll administrators and finance managers through every pay run, including the stressful ones.