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Uber Loses High Court Appeal, Must Pay More Than $81 Million in NSW Payroll Tax
Uber loses High Court appeal and must pay more than $81 million in NSW payroll tax
Key points
- The High Court ruled NSW payroll tax applies to Uber fares for the 2015 to 2020 financial years; one of seven justices dissented.
- Uber made no provision for the potential $81.5 million liability when it lodged its financial results earlier this year.
- The NSW Supreme Court sided with Uber in 2024, but the NSW Court of Appeal overturned that ruling last year.
Why it matters. The ruling may set a precedent for hundreds of millions of other transactions if replicated over more time and in other states, with wider effects on the gig economy.
Australia's High Court on Wednesday dismissed Uber's appeal, ruling that the rideshare company must pay more than $81 million in NSW payroll tax on fares from the 2015 to 2020 financial years. The justices found Uber's driver contracts obliged drivers to carry riders once accepted, making ride payments 'deemed to be wages'; one of seven justices dissented. NSW Finance Minister Courtney Houssos said Uber should pay its fair share.
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Uber Loses High Court Appeal, Must Pay More Than $81 Million in NSW Payroll Tax
Uber must pay more than $81 million in payroll tax to the state of New South Wales after the High Court dismissed the rideshare company's appeal. Uber had argued it was a 'payment collection agent' and that funds sent to drivers were not wages. The High Court ruled the NSW payroll tax shouldn't be avoided on that basis, ending a years-long legal dispute. Reports say states and territories could collect substantial tax revenue from gig economy companies following the decision. The ruling is likely to have broader implications for how platform operators are taxed across the sector.