Uber Ordered to Pay AU$81.5 Million in Landmark Payroll Tax Ruling

Australia’s High Court has dealt a major blow to the gig economy, ruling on November 4, 2026, that Uber must pay AU$81.5 million in payroll tax to the New South Wales (NSW) state revenue authority. The decision is widely expected to reshape how gig platforms classify and compensate workers across the country.

In a 6–1 majority decision, the High Court dismissed Uber’s appeal and declared that fares paid to its drivers constituted “wages” under NSW payroll tax law. The ruling covers the financial years 2015 to 2020.

The court found that drivers performed services under contracts with Uber, and that payments remitted to them were “paid or payable for or in relation to the performance of that work.”

Uber had argued that it was merely a “payment collection agent”, passing rider fares to drivers after deducting a service fee, and therefore should not be liable for payroll tax. The High Court rejected that position.

Legal analysts warn that the ruling could have significant nationwide implications, as payroll tax laws are largely harmonized across Australian states and territories. Other states may now follow NSW’s lead and issue similar payroll tax assessments to Uber and potentially other gig-economy platforms operating under contractor models.

Source: ABC News Australia, November 4, 2026