22 June 2026 · 8 min read
Quick Answer
The best SBSCH alternative depends on your size. The main options are: (1) your default super fund''s own clearing house (often free if you use their fund, but tied to that fund); (2) a commercial clearing house or payroll suite like Xero or MYOB ($50-70/month); and (3) a low-cost compliance tool like SAB Account AI ($9/month) that calculates super, tracks the Payday Super 7-day deadline and reports through STP. All replacements must support STP Phase 2 and same-day or next-day payment, because from 1 July 2026 super must reach employee funds within 7 days of each payday.
When the Small Business Superannuation Clearing House closes on 1 July 2026, more than 600,000 small businesses lose a free service overnight. The good news is the replacement market is competitive. The bad news is that the obvious choices — Xero and MYOB — are also the most expensive, and they bundle super into full payroll suites you may not need.
This guide compares every realistic SBSCH alternative for an Australian small business in 2026, ranked by who they suit. The right answer for a sole trader with one casual employee is not the same as for a growing business with fifteen staff across two states. What does not change is the compliance bar: whatever you pick must report through Single Touch Payroll Phase 2 and must clear super to funds inside the Payday Super 7-day window from 1 July 2026.
We have included SAB Account AI (sabaccountai.com) in this comparison because it was built specifically for the sole traders and micro-businesses who were the core SBSCH users — and who feel the jump from a free service to a $70-a-month suite most sharply.
Many large super funds — including industry funds — run their own clearing house that lets you pay super for all your employees in one transaction, often at no charge, provided your default fund is with them. Examples include the clearing houses operated by major industry and retail funds. For a business that already directs most contributions to a single default fund, this can be the closest free-like replacement for the SBSCH.
The trade-offs: you are tied to that fund''s platform, the user experience varies widely, and you still need separate payroll software to calculate super and report through STP. The clearing house only distributes money — it does not work out how much each employee is owed or keep your STP obligations in order. You also need to confirm the fund''s facility meets the Payday Super 7-day deadline from 1 July 2026.
Watch the gap: A super fund clearing house moves money but does not calculate super or report STP. You still need a tool for those — and those are the parts the ATO penalises.
Super fund clearing house — pros and cons
Xero and MYOB are the default recommendation from many accountants because they are full accounting and payroll platforms with built-in super payment (auto super) features. They calculate super, report through STP Phase 2, and clear payments to funds — a genuine end-to-end replacement for the SBSCH.
The issue is cost and complexity. Xero plans with payroll typically run $50-70 per month, MYOB similar. For a business already using Xero for accounting, adding payroll may make sense. For a sole trader with one or two employees who just needs to pay super correctly and on time, a full double-entry accounting suite is far more than the job requires — and the price reflects features you will never use.
The overkill trap: A full accounting suite to pay super for two employees is like buying a truck to carry a backpack. Match the tool to the job.
Xero / MYOB — pros and cons
SAB Account AI sits in the gap the SBSCH closure leaves wide open: small employers who need correct super, Payday Super compliance and clean records, without a $70-a-month suite. From $9 per month it calculates super at the 12% guarantee rate on ordinary time earnings for every pay run, tracks the Payday Super 7-day deadline, generates ATO-compliant payslips, reports through STP, and keeps a permanent record of every payment.
Crucially, SAB Account AI keeps your records permanently — solving the single biggest risk of the SBSCH closure, which is that your historical data vanishes when the portal shuts. It was designed for Australian conditions: PAYG withholding, BAS, super, and STP, with an AI chat that answers compliance questions in plain English.
Best fit for SBSCH refugees: If you were a small SBSCH user, SAB Account AI is the closest match for your needs at a fraction of suite pricing — sabaccountai.com.
SAB Account AI — what you get
Use your size and existing tools to decide. If you already run your books in Xero or MYOB and have several employees, turning on their payroll module is the path of least resistance. If your default fund offers a free clearing house and you are comfortable handling super calculation and STP separately, that can work for very simple setups.
But if you are a sole trader, a family business, or a micro-employer with one to ten staff — exactly the group the SBSCH was built for — you want the cheapest tool that still nails compliance: correct super, on time, properly recorded, STP-reported. That is the SAB Account AI sweet spot.
Whatever you choose, decide and migrate before mid-June 2026. The last week before the 30 June deadline will see a rush, and you do not want to be setting up a new system the night before your first Payday Super run.
Timing: Migrate before mid-June 2026. Setting up a new super system the night before your first July payroll is how compliance mistakes happen.
Decision rule by business type
Replacing the SBSCH? SAB Account AI (sabaccountai.com) is built for the sole traders and micro-businesses the clearing house served — super calculation, Payday Super tracking, STP and permanent records from $9/month.
SAB Account AI — ATO-compliant invoicing and payslips for Australian small businesses. From $9/mo.
Start free trialThe closest free-like option is your default super fund''s own clearing house, if they operate one. However, it only distributes payments — you still need separate software to calculate super and report through STP, and there is no fully free government replacement after the SBSCH closes.
No. Xero and MYOB are full payroll suites at $50-70/month and are overkill for small employers. Lower-cost tools like SAB Account AI ($9/month) handle super calculation, Payday Super tracking and STP for sole traders and micro-businesses.
It must support Single Touch Payroll Phase 2 reporting and clear super to employee funds within 7 days of each payday, as required by Payday Super from 1 July 2026.
A low-cost compliance tool such as SAB Account AI is generally the best fit, because it calculates super, tracks the Payday Super deadline and keeps permanent records from $9/month without the cost of a full accounting suite.
Switch before mid-June 2026. The SBSCH closes 30 June 2026 and Payday Super starts 1 July 2026, so you want your new system tested before your first July payroll.