iscoverBefore the upcoming abolishment of the Small Business Superannuation Clearing House, the Tax Office will close it to new registrants from 1 October 2025.
‘Not happy, disappointed’: Practitioner slams latest ATO SBSCH decision
15 August 2025
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8 minute read
In an email alert from the ATO sent on Wednesday morning (13 August), it was revealed that the Small Business Superannuation Clearing House (SBSCH) will close to new registrants in October.
The ATO noted the restriction of new users was to aid in the closure process of the SBSCH on 1 July 2026 as part of the reform to payday super.
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The alert read: “As part of supporting small businesses to transition to alternative services prior to this time, new users will be unable to register to use the service from 1 October 2025.”
“Current SBSCH users will continue to have access to make payments until 30 June 2026. Existing users are encouraged to take steps now to transition to alternative options.”
“These include reviewing you or your clients existing software and payroll packages, which may already include super functions, or looking at options offered by super funds, commercial clearing houses, or other payroll software or providers.”
Upon receiving the news, Tony Greco, Institute of Public Accountants senior tax advisor, said he was neither pleased nor happy with the “very disappointing decision”.
Greco said his disappointment stemmed from the “radio silence” on whether payday super was still scheduled for 1 July 2026 despite strong recommendations from the joint bodies to delay implementation.
“The Small Business Clearing House is a no-cost option for many small businesses that offers one very important additional benefit. Only the SBSCH offers protection from substantial SG penalties if there are any delays in the money dropping into the employees' nominated superannuation account,” he said.
“If employers use any other commercial clearing house, they are on the hook for penalties if there are any hiccups in administration between the clearing account and the money received in the employee’s super account. In most situations, these factors are beyond the control of the employer, yet the law makes it clear who is responsive when things go wrong.”
When the government first announced the SBSCH closure, it was strongly opposed by multiple small business advocates who stated it would add increased stress and pressure to already struggling SMEs.
The IPA originally urged the government to seriously think about having a replacement facility and to rethink the closure entirely.
In addition, IPA said it was important that employers and small businesses who currently use the clearing house would need to be adequately supported and educated before the change and during the initial transition period.
Based on the most recent development, Greco said: “On behalf of 200,000 small businesses existing and potential new users of the SBSCH – not happy.”
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