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What is the SBSCH? | Small Business Super Clearing House

The Small Business Superannuation Clearing House (SBSCH) is a free online service from the Australian Taxation Office (ATO) that simplifies superannuation payments for small businesses.

The SBSCH allows eligible employers to pay superannuation contributions for all their employees in a single, streamlined transaction, even if the employees have different super funds. Instead of managing multiple payments and reports for each fund, the employer makes one payment to the clearing house, which then securely distributes the correct amounts to each employee’s nominated fund. This service is designed to reduce administrative burden and help businesses meet their super obligations.

How the SBSCH Works

Using the SBSCH is a straightforward process. Once registered for the service through the ATO’s online services, a business provides the employee and super fund details. For each super payment cycle, the employer submits a single payment instruction and transfers one lump sum to the clearing house. The SBSCH then takes responsibility for splitting the payment and sending it to each employee’s respective superannuation fund, along with the corresponding data.

Eligibility for Use

The free SBSCH service is specifically available to small businesses and self-employed individuals. To be eligible, a business must have:

  • 19 or fewer employees, OR
  • An aggregated annual turnover of less than $10 million.

Businesses that do not meet these criteria must use an alternative clearing house solution, which may be offered by their payroll software provider or a commercial clearing house.

Key Benefits of the SBSCH

For a small business, using the clearing house offers several significant advantages:

  • Saves Time: It consolidates many payments into one, dramatically reducing administrative work.
  • It’s Free: There are no fees for eligible businesses to use the ATO’s service.
  • Simplifies Record-Keeping: Provides a clear history of payments made through the service.
  • Improves Compliance: Helps ensure super contributions are paid correctly and on time.

SBSCH and Super Guarantee Compliance

A crucial aspect of the SBSCH is its role in meeting Superannuation Guarantee (SG) deadlines. A super contribution is considered “paid” on the date the clearing house accepts it, not the date it is received by the employee’s fund. This gives businesses certainty that they have met their obligations by the quarterly due date, as long as they pay the clearing house on time.