Employers should begin planning now for the permanent shutdown of the Small Business Superannuation Clearing House (SBSCH) on 1 July 2026. Taking action early ensures you can transition smoothly to an alternative super payment method and avoid issues around quarterly SG deadlines.

Switching ahead of time will help businesses:

• Maintain a reliable super payment process for the March and June 2026 quarters
• Avoid late SG payments for the June 2026 quarter (due 28 July 2026)
• Adjust cash flow for more frequent SG payments
• Download any final SBSCH reports before the system closes

Important SBSCH Dates to Note

• 10 December 2025: Super payments and instructions must be received by 5.30pm AEDT. Payments after this time will not be processed until 2 January 2026.
• 28 January 2026: SG payments for the December quarter are due.
• February–March 2026: Ideal time for employers to transition to another SG payment service.
• 28 April 2026: SG payments for the March quarter are due.
• 30 June 2026: Last day to use the SBSCH and access records.
• 1 July 2026: SBSCH permanently shuts down.

Employers may find that their current accounting or payroll software already includes superannuation payment capabilities. Alternatively, clearing house services are available through many super funds and digital service providers.

Reminder of December 2025 Quarter Superannuation Guarantee ('SG')

Employee SG contributions for the quarter ending 31 December 2025 must reach employee super funds by 28 January 2026. Missing the deadline will trigger the Superannuation Guarantee Charge, which includes penalties and interest.

For the 2026 income year, the SG rate is 12%, up from 11.5%.

Dental expenses are private expenses

The ATO has observed many tax returns incorrectly claiming dental-related deductions this year. Dental and personal grooming expenses—including dental treatment, preventative care, teeth whitening, skincare, makeup, shaving products and haircuts—are considered private expenses.

Even if an employer expects a certain standard of appearance or provides an allowance, these costs cannot be claimed.

Only expenses that directly relate to earning income are deductible, and taxpayers must retain written evidence to support all claims.

Australians call out tax dodgers in record numbers

More than 300,000 tip-offs about tax avoidance, cash-only activity and other dishonest behaviour have been lodged with the ATO since 1 July 2019. In 2024/25 alone, nearly 50,000 reports were made.

The most common issues raised include:

• Undeclared income
• Cash payments used to avoid tax
• Lifestyles not matching declared earnings
• Failure to report all sales

Industries receiving the highest number of reports:

• Building and construction
• Cafes and restaurants
• Hairdressing and beauty services

ATO's new approach to holiday home expenses

The ATO has announced a stricter stance on deductions claimed for holiday homes.

If a property is both a rental and a holiday home, deductions related to holding costs may be fully denied, rather than apportioned, unless the property is used mainly to produce assessable income.

This includes expenses such as:

• Interest
• Rates
• Maintenance

The revised approach generally will not apply to expenses for rental properties before 1 July 2026, provided the arrangements were entered into before 12 November 2025.

Taxpayers unsure of how this affects their property should seek guidance early.

ATO warns about barter credit tax scheme

The ATO is cautioning taxpayers about emerging schemes involving barter credits used to artificially inflate deductions through donations to deductible gift recipients (DGRs).

In these arrangements:

• Participants acquire barter credits with inflated face value
• Credits are then donated at the inflated value
• Taxpayers claim deductions far greater than the actual cost

These schemes can lead to serious consequences including repayment of the tax benefit, penalties, interest and possible legal action.