Australia’s High Court has ruled that Uber owes A$81 million in payroll tax in New South Wales for the 2015 to 2020 tax years, a decision that could push the company’s total bill above A$100 million if applied to subsequent years.
In a six-to-one judgment on Wednesday, the apex court dismissed Uber’s appeal against an assessment by the NSW Chief Commissioner of State Revenue.
Uber had argued that its drivers were independent contractors rather than employees and that payouts to them did not constitute wages under state law. However, the majority ruled that driver payments qualify as wages for payroll tax purposes.
The court noted that passenger fares pass directly through Uber before reaching drivers, allowing the company to control pricing, deduct service fees, or adjust fares.
Chief Justice Stephen Gageler stated that statutory provisions designed to address contracting arrangements apply to modern gig economy platforms.
NSW Finance Minister Courtney Houssos welcomed the ruling, emphasizing that payroll tax helps fund essential public services and that gig platforms must pay their fair share alongside local businesses.
