Small Business Superannuation Clearing House

The Super Fund Clearing House is a free government superannuation payments clearing service for small businesses with less than 20 employees, or an annual aggregated turnover of less than $10 million.

The definition of “aggregated turnover” is the same as that adopted for the Small Business Entity concessions, i.e. annual turnover plus the annual turnover of any business you are connected with or that is your affiliate.

Eligibility for Super Clearing House Participation

An ABN is required to participate in the scheme, and registration conditions require that you are eligible to use the service both

  • at the time of registration, and
  • at each time the service is used.

The scheme provides administrative efficiencies for small businesses who need to manage the superannuation contributions for up to 19 employees (or meeting the maximum turnover test) potentially all of whom could have different super funds nominated for their SGC contributions.

What the SBSCH does

By allowing employers to make one single super payment to the clearing house, they hand off the job of sending that money to all the different employees’ superannuation fund bank accounts.

All the information is retained online, so that employers can get reports for reconciliation and compliance purposes.

Superannuation Funds can also register with the clearing house to get access to contributions reports and ensure their details have been accurately recorded.

All transactions, including registrations, payments and reporting are conducted online, and there is information to help employers identify correct super fund details, and comply with the default fund and choice requirements.

(A choice fund is nominated by your employee in accordance with the requirement that they are provided with a standard choice form within 28 days of commencement.  The default superannuation fund is included in the standard choice form, and is where SGC contributions are paid if the employee doesn’t make a choice)。

SBSCH managed by the Tax Office

From April 2014 the administration of the Small Business Superannuation Clearing House has been carried out by the Australian Taxation Office and integrated with ATO online services from 26 February 2018.

The SBSCH can be accessed by employers via the Business Portal or through ATO’s online services (myGov). More info here.

Payments at year end

The Tax Office has warned that for “for the purpose of claiming a tax deduction” for the 2019–20 year super payments need to be accepted by the SBSCH by 23 June 2020 to allow time for the employees’ super funds to receive the payments by 30 June.

This conflicts with the “compliance approach” outlined in a draft (and hence not in effect) Practical Compliance Guideline PCG 2019/D8 which at the time of writing has not been finalised.

The draft PCG essentially provided that the ATO would not seek to challenge a deduction solely on the basis of timing if payment is made to the SBSCH within the financial year in which the deduction is sought to be claimed (i.e. there would be no demand to show that the super fund has also accepted the funds within that time).

Further information

 

This page was last modified 2020-06-02