If you use the ATO's Small Business Superannuation Clearing House (SBSCH), changes are coming that affect how you pay super. The SBSCH closes permanently on 1 July 2026, and Payday Super starts the same day. Here's what that means for your workflow.

Two changes landing at once

The SBSCH closure and Payday Super are separate changes, but they land on the same date. That's not a coincidence. It signals that the quarterly super model is over. Here's the timeline:

• SBSCH stopped accepting new registrations on 1 October 2025
• Existing users can keep using it until 30 June 2026
• Payday Super starts on 1 July 2026, meaning super is due with every pay run, not quarterly

Think of it as 2 connected changes: first the tool closes, then the rules change. If you plan for both at the same time, you only need to adjust your workflow once.

What Payday Super actually changes about your workflow

Under the current quarterly model, payroll and super are 2 separate tasks. You run payroll, then before the quarterly deadline you log into the SBSCH, re-enter or upload employee data, submit the payment, and make a separate bank transfer. It's clunky, but you only do it 4 times a year.

Under Payday Super, that same process repeats every pay run:

• Fortnightly payroll: 26 times a year instead of 4
• Weekly payroll: 52 times a year instead of 4

A process that works quarterly can get hard to manage at pay run frequency, which is why it helps to move to a setup that connects super to each pay.

There's also less room for error. With Payday Super, contributions need to reach super funds within 7 business days of payday, so you need a process that runs on time every pay run. Errors surface faster, and there's less time to correct them.

What to look for in a replacement

Before comparing new tools, check what you already use. If you use accounting or payroll software, it might already handle super payments and you may just need to turn that feature on.

When comparing options, focus on 3 things:

• Integration with payroll: super is calculated and submitted as part of your pay run, not a separate step requiring a different login or manual re-entry
• Timing and reliability: you can authorise payments when you run payroll and be confident they'll reach funds within the 7 business day window Payday Super requires
• Visibility and reporting: you get clear records of what's been sent, what's cleared, and any errors or returns, which matters when you're making 26 or 52 payments a year

For context, tools like Xero Auto Super streamline the calculation of your super payments as a part of the pay run and let you approve via SMS, with no separate portal or bank transfer.

Why it helps to sort this before June

The SBSCH is available until 30 June 2026, the last day of the financial year. Waiting until June means sorting this out while you're also managing end of financial year (EOFY) payroll, tax prep, and everything else that piles up at that time of year.

If you use the SBSCH, also make sure you log in and download any contribution records you need for your files before the service closes on 30 June 2026. 

Moving earlier gives you something valuable: the chance to test the new workflow under quarterly conditions before Payday Super is mandatory. You can run a few pay cycles through a new system while the stakes are low, before EOFY and before many other businesses are making the same change.

On cash flow: Payday Super doesn't change how much super you owe, it changes when the money leaves your account. Quarterly payments that made super feel like a periodic expense. More frequent, smaller payments are often easier to manage than paying out 3 months' worth of super at quarter-end. If cash flow is tight, that's worth testing now.

The SBSCH was free, government-backed, and worked well for quarterly super. But the model it was built for is being retired along with it. The closure is a good prompt to modernise a workflow that was always a bit of a workaround.

As the SBSCH winds down and Payday Super kicks in, moving to an integrated payroll system like Xero can take super off your mental load and keep you on top of the new rules. Check out the useful links section on the right-hand side of this subreddit, to see how Xero may help your business with the transition.

Have you decided how you’ll handle Payday Super yet?

The information in this article should be used for general guidance only and you should seek appropriate tax, financial and legal advice as may be appropriate for your particular business needs.

From 1 July 2026, super payments move from quarterly to every pay run and the Small Business Superannuation Clearing House (SBSCH) closes on the same day, with the final super contributions being accepted on 30 June 2026, as long as you’re already registered. Due to the upcoming close, the SBSCH has already stopped accepting new registrations. 

That means, if you haven’t already, you’ll need to switch to Payday Super before reaching this deadline. Don't worry, we'll walk you through what's changing, how to prepare, and what a smoother super workflow looks like.

What's actually changing

Payday Super doesn't change what you owe. It changes when and how often you pay it, along with how this is paid.

Quarterly super payments meant a minimum of just 4 payment events a year. With the transition to Payday Super, this will now mean 26 payments a year for fortnightly pay runs or 52 for weekly pay runs. Any manual step in your current process, such as logging into a separate platform, exporting a file, or re-entering employee details, now repeats every single pay run.

Super must also land in the employee's fund within 7 business days of each payday. The ATO will cross-reference your Single Touch Payroll (STP) data with super fund reporting, so missed or late payments get spotted faster.

The SBSCH situation: act before June

If you use the SBSCH, make sure you log in and download any contribution records you need for your files before the service closes on 30 June 2026. If you rely on the SBSCH, you'll also need to select a new option to pay your employee’s super, before it closes. A good first step is to check if your existing payroll solution supports an all-in-one payroll and super payment option, making the transition much easier. If it doesn’t, choose an alternative all-in-one payroll and super payment platform. Do this well before June so you can set it up at a steady pace and start the new financial year with your super process already running smoothly.

Your Payday Super preparation checklist

Getting ready is straightforward if you work through it in order.

1. Audit your current super workflow

Ask yourself 3 questions:

• How are you calculating super: automatically in payroll software or manually?
• How are you submitting it: through SBSCH, a commercial clearing house or direct to funds?
• How are you making the payment: through the clearing house or a separate bank transfer?

If any of those steps involve manual data entry or logging into a separate system, that's the friction point that breaks down at pay-run frequency.

2. Clean up your employee and fund details

Every employee needs a valid super fund recorded in your payroll system, plus the correct Unique Superannuation Identifier (USI) and member number where the fund requires them. Under Payday Super, a returned or failed contribution is a compliance issue you need to resolve within days, not weeks. Cleaning this up now is much easier than fixing missing details mid-pay run.

3. Understand how your system handles failures

What happens when a contribution bounces? Maybe it's a wrong member number, a closed account, or a fund merge. Does your system notify you? Can you resubmit quickly? If you don't know, find out now, before the July deadline rolls around.

4. Run a trial before it's mandatory

In the months before July, do a test run. See what more frequent super payments look like in your cash flow. Check that payment confirmations come through cleanly. Identify any employees with missing or incorrect fund details. You can voluntarily start paying super more frequently before 1 July 2026 to stress-test the workflow early.

5. Rethink your cash flow rhythm

The total annual super obligation is identical: this isn't a new cost, it's a timing change. But the money leaves your account more often, with each pay run, instead of once a quarter.

If you currently find it hard to have quarterly super ready when it's due, Payday Super will surface that faster. Model it out: look at what fortnightly or weekly super deductions look like alongside wages and PAYG withholding, and make sure your cash flow rhythm supports it.

6. Talk to your bookkeeper, BAS agent, or accountant

If you have casuals, contractors, employees under 18, or complex award arrangements, get advice before July. Questions worth asking:

• Is super owed on all payments to this casual?
• Does this contractor arrangement trigger super obligations?
• What's the right pay schedule for our business size and cash flow?

What the workflow difference actually looks like

The manual approach can work when you pay super 4 times a year. At 26 or 52 pay runs a year, it usually becomes time-consuming and harder to manage.

Manual or clearing-house approach:

1. Run payroll in your system
2. Export super details separately
3. Log into SBSCH or another platform
4. Enter or upload employee details and amounts
5. Submit payment request
6. Make a separate bank transfer
7. Reconcile across systems later

Integrated payroll approach:

1. Run payroll (super calculates automatically)
2. Review payroll and super together
3. Approve payment
4. Super may be paid directly through the same system

The integrated approach treats super as part of the pay run, not a separate task. 

The bottom line

Once it's set up properly, paying super with every pay run is actually less of a mental load than remembering to do it every quarter. If you're already on integrated payroll with auto super, like Xero, you're probably fine with a few setup checks. 

If you’re still handling super through the SBSCH or a manual process, now’s the time to switch to an integrated payroll solution, so Payday Super becomes part of your normal pay run, not an extra chore. You can find our ‘Try Xero for free’ link and more info on Payday Super in the useful links section on the right-hand side of this subreddit. 

Have you started planning your move to Payday Super yet?

The information in this article should be used for general guidance only and you should seek appropriate tax, financial and legal advice as may be appropriate for your particular business needs.

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Hi Reddit,

Join us for an Ask Me Anything (AMA) session hosted by Martine Hoosen – Founder of The Bookkeeper's Academy, a bookkeeper and registered BAS agent, and a member of the Xero Partner Advisory Council here in Australia. Martine works with small businesses, accountants and bookkeepers every day to help them run payroll and stay on top of super.

With Payday Super coming in on 1 July 2026, we know there are a lot of “OK, but what does this actually mean for me?” questions.

On Wednesday 20 May at 12pm AEST, Martine will be here in this thread as u/XeroGlobal, supported by the Xero team, for a live AMA on:

• What Payday Super is and what’s changing
• What it means for your cash flow and pay runs
• How Xero Payroll and Auto Super can help you manage Payday Super

Who this AMA is for:

• Small business employers using (or considering) Xero Payroll
• Accountants and bookkeepers supporting clients through Payday Super
• Anyone who wants Payday Super explained in plain English

How it works:

• Drop your questions in the comments below any time from now
• Martine will be here live from 12–1pm AEST on Wednesday 20 May answering as many as she can!

A few ground rules:

• Martine can share general bookkeeping and payroll guidance, but this AMA isn’t a substitute for personalised tax, legal or financial advice
• We can’t look at or access individual Xero organisations or files here - please contact Xero Support if you need assistance
• We’ll never ask for your login details or sensitive personal information
• Please follow the usual r/XeroOfficial rules and keep things respectful

Bring your curly Payday Super, Xero Payroll and Auto Super questions — the goal is for you to leave this AMA feeling more prepared and confident before the changes kick in.

Thanks,
The Xero team