The way you pay super is changing

The way you pay super is changing. From 1 July, superannuation must be paid at the same time as your regular salary or wages, and must be received by the fund within 7 business days of payday.

Below is a quick checklist to ensure your business is ready for the transition.

1. The ATO SBSCH is closing down

• Switch to a new super payment system
  The Small Business Superannuation Clearing House (SBSCH) closes permanently on 30 June. You must move to a compliant system (like Xero Automated Super or an alternative industry/commercial clearing house) before 30 June.

• Download your historical records
  If you have been using the ATO SBSCH you will need to log into the SBSCH portal and download all employee payment and superannuation transaction details before 1 July. You will lose access to this data once the portal closes.

2. Review your payroll setup

• Check your software
  Make sure your payroll software is fully updated and configured to handle the new Payday Super rules. 

• Qualifying earnings 
  Make sure your pay items are configured to correctly report Qualified Earnings. You should check that these settings are correct to ensure that QE is correctly reported to the ATO for pay runs filed in financial year 2027. 
• Audit employee data
  Double-check that all employee details, including Super Fund names, Unique Superannuation Identifiers (USIs), and individual member numbers are 100% accurate.

3. Update your internal processes

• Shift to Per-Pay-Run payments
  Update your workflow to approve and pay super every single time you process payroll, rather than holding it for monthly or quarterly batches.

• Eliminate approval delays
  Establish a strict internal timeline so that super payments are approved immediately on payday to hit the strict 7-business-day delivery window.

4. Manage and Forecast Your Cash Flow

• Plan for more frequent payments
  Super will now be paid with each payroll, so expect money to leave your account more often. Make sure your bank accounts and cash flow can comfortably cover this. 

• Keep your cash flow forecast up to date
  Update your forecasts to reflect these more regular payments, so you always have enough funds available when wages and super are due. 

Moving to a per-pay-run system means greater reliance on reliable software, but it eliminates the stress of massive quarterly super bills. By having your systems ready now will ensure a seamless transition on 1 July!