For small businesses, paying super contributions for employees can involve a lot of time, effort and money in the form of super compliance costs. But if your small business has 19 or fewer employees, or an annual aggregated turnover of less than $10 million, you can make use of the free services of the Small Business Superannuation Clearing House (SBSCH).
It is worth noting this is a free service, however if you make payments to the SBSCH using BPAY or Electronic Funds Transfer (EFT), you may be charged a fee from your financial institution.
What is the Clearing House?
The Small Business Superannuation Clearing House (SBSCH) is a service provided by the Government with the aim of reducing red tape and overheads for very small businesses. The SBSCH greatly simplifies the process of making employee superannuation contributions by allowing employers to make a single lump payment to the SBSCH, which is then broken into individual payments for each employee’s respective super funds.
Usually an employer would be required to make a series of individual payments to various superannuation funds on behalf of its employees at least four times a year. This can be an incredibly time-consuming exercise, with possible compliance costs incurred by the business in the process.
Using the SBSCH can simplify and streamline the process. Small business owners only need to input employees’ details once and they are securely stored for future transactions. When using the SBSCH, super will be paid the SuperStream way and super guarantee obligations are met as soon as they are accepted by the Clearing House.
The SBSCH has always been an online service, but as of early 2018 it was integrated with the Australian Tax Office’s online systems – here’s a few things to know about what did and didn’t change.
- Any and all information currently registered in the SBSCH’s system is still stored
- The appearance and feel of the website has changed
- Previous user ID and passwords do not work; you will need to log in through the ATO’s Business Portal through MyGov.
- The SBSCH has new functionalities including being able to accept credit card payment and sort employee listings
The following table contains details of the superannuation funds rated by Canstar based on someone aged 30-39. This table has been sorted by three-year performance (highest to lowest).
Please note that the performance information shown in the table is for the investment option used by Canstar in rating of the superannuation product.
To view the past performance of all super funds, rated by Canstar, use our comparison tool:
How do I sign up for the Clearing House?
You can register your business for the SBSCH by visiting the Australian Taxation Office’s (ATO) website here.
To register, you’ll need:
- your Australian Business Number (ABN) or Withholding Payer Number (WPN)
- your email address
- employees’ details.
Upon registering you will be required to provide your business’s and employees’ details, but will not be required to do so again in future once they’re in the SBSCH system.
The ATO offers several resources which can assist small business owners in registering for the SBSCH; this includes a file that can be found here as well as a series of instructional videos.
Once you’re fully registered you can nominate someone other than yourself to be the person who uses the SBSCH on your behalf, such as your payroll officer or accountant.
Payments made through the SBSCH usually only take a few minutes and the service is available 24/7.
If you’re looking for the best-value superannuation fund for yourself personally, you can compare super funds with Canstar.