ABC Top Stories1 hour agoLaw1 min readAustralia

Breaking: Uber to pay $81m in payroll tax after High Court ruling

Quick Look

Australia's High Court dismissed Uber's appeal, ruling that driver fares constitute wages subject to NSW payroll tax for 2015-2020, requiring Uber to pay $81 million plus costs, with broader gig economy implications.

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Why It Matters

Uber challenged a payroll tax assessment covering fares paid to drivers between the 2015 and 2020 financial years, arguing it was merely a payment collection agent and should not be captured by NSW payroll tax rules.

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Uber will have to fork out $81 million after the High Court of Australia determined the rideshare company owed payroll tax in New South Wales.

The company lodged a High Court challenge to an assessment that payroll tax be imposed on the fares given to Uber drivers between the 2015 and 2020 financial years.

Uber had argued that it was merely a "payment collection agent" that gave the fare to the driver after deducting service fees, and that it should not be captured by NSW payroll tax rules.

But the High Court, by majority, dismissed the company's appeal in full today.

It declared that Uber's drivers were employed under contracts and that the fares they received were deemed to be wages for the purposes of payroll tax legislation.

Uber will also be required to pay the costs to the NSW Chief Commissioner of State Revenue.

The decision is likely to spark ramifications for the broader gig economy.

What to Watch

AI outlook — possibilities, not facts

Other gig economy platforms may face similar payroll tax assessments in New South Wales
Likely · Within months

Open Questions

How many drivers are affected by the ruling?
Whether the decision will apply retroactively beyond the 2015-2020 period
How other gig economy platforms will respond to the precedent