The ATO’s Small Business Clearing House (SBCH), which enables employers with fewer than 19 employees to report superannuation payments electronically, is closing.
When is this Happening?
The SBCH will no longer be available from:
- 1 October 2025 for new entrants
- 1 July 2026 for existing users
Why is this Happening?
The government is moving to legislate to introduce Payday Super (PDS) effective 1 July 2026.
The introduction of PDS will require employers to pay their employees’ super at the same time as paying their wages.
Whilst not law yet, the ATO is preparing for the change by closing the SBCH, as part of the PDS reform.
This will mean employers will have to find alternatives to using the SBCH by:
- 30 September 2025 – New users
- 30 June 2026 – Existing users
Alternatives
There are other ways in which employers can continue to meet their ongoing obligation to report superannuation payments electronically:
- Payroll systems such as those provided by Xero. The subscription fee will vary depending on the software provider and the number of employees.
- Super clearing houses
- Commercial clearing houses, such as SuperChoice, which generally charge a fee for service
- Larger superannuation funds, such as those that use QuickSuper, which is currently free of charge for those who register as an employer or use it as the default fund.
Next Steps
By the due date:
- Subscribe to a software provider with SuperStream enabled through Single Touch Payroll, or
- Upgrade your subscription, where required, with your existing software provider with SuperStream enabled through Single Touch Payroll, or
- Sign up to one of the clearing house providers available for a fee or free, depending on the terms of the clearing house provider.
As always, dmca advisory is here to help. If you would like further information on the changes or assistance in finding an appropriate provider or software solution, please do not hesitate to contact us at 08 8272 5620 or [email protected], and we will be happy to help you with the transition.