Australia's top court held that fares Uber passes to drivers count as wages for payroll tax, upholding an assessment of about US$53.3 million (A$81 million).
Australia's High Court has dismissed Uber Australia's appeal over New South Wales payroll tax, holding the ride-share business liable for tax on fares it collects from riders and passes on to drivers, Australasian Lawyer reported. The case is Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2026] HCA 40.
The state's Chief Commissioner of State Revenue assessed Uber for payroll tax on about US$53.3 million (A$81 million) in fares remitted to drivers over the financial years ending 30 June 2015 to 30 June 2020, treating the payments as made for work performed under Uber's driver contracts.
Uber first won in the NSW Supreme Court, where Justice Hammerschlag accepted that the driver contracts were relevant contracts under the payroll tax law but held that the amounts remitted were not wages, and revoked the assessments. The Court of Appeal allowed the commissioner's appeal and dismissed Uber's cross-appeal. In the High Court, Uber argued it owed no tax to the extent the payments were simply rider money passed through to drivers. Justices Gordon, Edelman, Gleeson, Jagot and Beech-Jones rejected every ground.
