22 June 2026 · 8 min read
Quick Answer
Before the SBSCH closes on 1 July 2026, complete these seven steps: (1) export your full SBSCH transaction history; (2) confirm every employee''s super fund USI and member number; (3) choose a replacement that supports STP Phase 2 and 7-day payment; (4) set up and configure the new system; (5) run a test pay cycle to verify super calculations; (6) adjust cash flow for paying super every payday instead of quarterly; and (7) finalise your last SBSCH payment for the January–March 2026 quarter as the ATO recommends. Payday Super begins the same day, requiring super within 7 days of each payday.
The SBSCH closes at 11:59pm AEST on 30 June 2026. That gives you a hard deadline and a finite list of things to get done. The mistake most employers will make is treating this as a single task — "switch super provider" — when it is actually seven distinct actions, some of which take longer than you expect (verifying fund details and running a test cycle in particular).
This checklist puts them in order. Work through it over the next few weeks rather than in the final days of June, because the last week before the deadline will be congested and any setup problem with a new system is far harder to fix under time pressure. Remember that 1 July 2026 is a double event: the SBSCH switches off and Payday Super switches on, so being "ready" means both having a working replacement and being prepared to pay super within 7 days of every payday.
SAB Account AI (sabaccountai.com) is referenced throughout because it covers steps 3 to 6 in one place — calculation, STP, deadline tracking and records — from $9/month, which is why it suits the sole traders and micro-businesses who made up most SBSCH users.
Step 1 — Export your SBSCH transaction history. Log in to ATO Online Services for Business and download every payment instruction and receipt for every quarter. After 1 July 2026 these records are permanently inaccessible, and you must keep super records for five years under the Superannuation Guarantee (Administration) Act 1992. Save copies in at least two permanent locations.
Step 2 — Verify every employee''s super fund details. You need each employee''s fund USI (Unique Superannuation Identifier) and member number to direct payments correctly in your new system. Errors here cause failed or misdirected contributions, which under Payday Super means a missed 7-day deadline and a potential Super Guarantee Charge. Ask employees to confirm their details in writing now, while you have time.
Start with records: Exporting your SBSCH history is the one task that becomes impossible after the deadline. Do it first.
Steps 1-2 actions
Step 3 — Choose a replacement that meets the new rules. It must support STP Phase 2 reporting and clear super to funds within 7 days of payday. Options range from your super fund''s clearing house, to full payroll suites (Xero, MYOB at $50-70/month), to low-cost compliance tools like SAB Account AI ($9/month) built for small employers.
Step 4 — Set it up properly before you need it. Enter your business details, ABN, employees, fund information and pay schedule. Connect STP. Do not leave configuration to the day of your first July payroll — give yourself a buffer to resolve any setup issues while the old system is technically still available for reference.
Set up early: Configure your replacement weeks before the deadline so any teething issues surface while you still have time to fix them.
Steps 3-4 actions
Step 5 — Run a test pay cycle. Process a real pay run in the new system and confirm three things: super is calculated at 12% on the correct ordinary time earnings base, the STP report goes through, and the payment clears to funds within the 7-day window. The ATO measures Payday Super by when funds are received, so testing the actual timing matters, not just the calculation.
Step 6 — Adjust your cash flow. This is the most overlooked step. Under quarterly super you held roughly three months of super before paying it. Under Payday Super you pay it within a week of every payday, so that buffer disappears. Model your weekly or fortnightly cash position with super included, and make sure the money is available every cycle — not just at quarter end.
Cash flow is the silent risk: Paying super every payday instead of quarterly removes a buffer many businesses unknowingly relied on. Model it before July.
Steps 5-6 actions
Step 7 — Close out the SBSCH cleanly. The ATO recommends the January–March 2026 quarter be the last quarter you use the SBSCH. If you make a final payment through it, confirm it has been received and allocated by every fund before you stop relying on the service, and download the receipts as part of step 1.
Then confirm there are no outstanding or in-progress payments sitting in the SBSCH as the deadline approaches — a payment submitted but not yet distributed when the service closes is a problem you do not want. Reconcile your year-to-date super so your new system starts with an accurate opening position, and you are done: records protected, replacement live, cash flow modelled, and Payday Super ready.
Clean handover: Make sure no payment is stuck mid-distribution when the SBSCH closes, and reconcile your year-to-date super into the new system.
Step 7 actions
SAB Account AI (sabaccountai.com) covers steps 3-6 of your SBSCH transition in one place — super calculation, STP, Payday Super deadline tracking and permanent records — from $9/month.
SAB Account AI — ATO-compliant invoicing and payslips for Australian small businesses. From $9/mo.
Start free trialExport your transaction history, verify employee fund details, choose and set up a replacement that supports STP and 7-day payment, run a test pay cycle, adjust your cash flow for payday-frequency super, and finalise your last SBSCH payment for the Jan–Mar 2026 quarter.
The ATO recommends the January–March 2026 quarter be the last quarter you use the SBSCH. The service closes permanently at 11:59pm AEST on 30 June 2026.
You need each employee''s super fund USI (Unique Superannuation Identifier) and member number to direct contributions correctly in your replacement system.
Because Payday Super requires super within 7 days of every payday instead of quarterly. The buffer of holding up to three months of super before paying disappears, so you must have the money available every pay cycle.
Yes. Run a test pay cycle to confirm super calculates correctly at 12% on ordinary time earnings, the STP report submits, and payment clears to funds within the 7-day window.