Business · Companies · 2 hrs ago
Australia's High Court orders Uber to pay NSW $81m in payroll tax
Australia’s High Court has ruled Uber must pay more than $81 million in payroll tax to New South Wales.
The case covers fares paid to Uber drivers in the state from 2015 to 2020.
Uber argued it only collected fares for drivers, rather than paying them wages, and should not owe the tax.
The court ruled that contracts required drivers to complete rides they had accepted, so their fares counted as wages under the relevant tax law.
The ruling ends a years-long legal fight after an earlier win for Uber was overturned on appeal.
It could affect the wider gig economy if the same reasoning is applied to other transactions or states.
Uber must also pay the NSW revenue chief’s legal costs.
Australia’s High Court ruled that Uber must pay about $81 million in New South Wales payroll tax.
The ruling covers fares paid to Uber drivers between the 2015 and 2020 financial years.
The court dismissed Uber’s appeal, finding that driver fares were deemed to be wages under payroll tax law.
Uber must also pay the NSW Chief Commissioner of State Revenue’s costs.
The decision could have wider ramifications for the gig economy.
- Who
- Uber and the NSW Chief Commissioner of State Revenue.
- What
- The High Court dismissed Uber’s appeal and ruled it owed about $81 million in NSW payroll tax.
- When
- The decision was handed down on Wednesday, November 4, 2026.
- Where
- New South Wales, Australia.
- Why
- The court found that driver fares were deemed to be wages under payroll tax legislation.
Uber
NSW Chief Commissioner of State Revenue
Tax liability
Uber
Uber argued it was a payment collection agent and should not be subject to payroll tax on fares paid to drivers.
NSW Chief Commissioner of State Revenue
The Chief Commissioner sought payroll tax on the fares, and the High Court ruled that the tax applied.
Driver payments
Uber
Uber said it collected fares, deducted service fees and passed the remainder to drivers.
NSW Chief Commissioner of State Revenue
The court found the fares were deemed to be wages under payroll tax law.
The payroll tax assessment covered fares paid to Uber drivers during this period.
The NSW Supreme Court ruled Uber was not liable for the payroll tax bill.
The NSW Court of Appeal overturned the Supreme Court ruling.
The High Court dismissed Uber’s appeal and ruled it owed NSW payroll tax.
- Tax bill
- About $81 million
- Tax period
- 2015–2020 financial years
- Jurisdiction
- New South Wales, Australia
- High Court outcome
- Uber’s appeal dismissed
- Additional costs
- Uber must pay the NSW Chief Commissioner of State Revenue’s costs
2 sources
What people are saying
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.
payment collection agent