High Court orders Uber to pay NSW payroll tax for 2015‑2020
+3 new sources since this summary was written
Australia’s High Court dismissed Uber’s appeal and ruled that payments to drivers are deemed wages, making the rides‑hailing firm liable for payroll tax. The court ordered Uber to pay the tax assessed for the 2015‑2020 financial years and to cover the revenue‑office’s legal costs. The decision was 6‑1 and overturns earlier rulings that had exempted Uber. Uber had not set aside any provision for the liability in its recent financial filing.
Why it matters
The company now faces a tax bill of about $81 million, which will reduce its cash balance and may require a restatement of its recent results (the company said it made no provision for the liability). Analysts note that the ruling could trigger similar assessments for other gig‑economy platforms in Australia.
Key facts
- 1Uber must pay about $81 million in NSW payroll tax for the 2015‑2020 financial years. hcamag.com
- 2The High Court ruled 6‑1 that drivers are employees for payroll‑tax purposes. aapnews.com.au
- 3Uber was also ordered to pay the NSW Chief Commissioner’s legal costs. hcamag.com
- 4Uber did not provision for the liability in its financial results filed earlier this year. smh.com.au
- 5The tax assessment covers the period between the 2015 and 2020 financial years. smh.com.au
Open questions
- Material 1 cites a liability of $81.5 million, while Materials 2 and 3 cite about $81 million for the same tax period.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.