Australia’s high court delivered a six-to-one judgment rejecting Uber's argument that it merely acts as an intermediary rather than an employer. The majority found that Uber maintains substantive control over passenger fares, including altering amounts or deducting fees, before remitting payments to workers. While the immediate judgment addresses an $81 million bill spanning 2015 to 2020, subsequent tax liabilities are projected to exceed $100 million. State officials noted that payroll tax represents a critical funding source, even though only about one in 20 businesses meets the threshold to pay it.
Key points
Modern gig economy platforms remain subject to state tax laws designed to address disguis…: Modern gig economy platforms remain subject to state tax laws designed to address disguised contractual arrangements.
Legal experts anticipate this judgment will influence payroll tax requirements for gig bu…: Legal experts anticipate this judgment will influence payroll tax requirements for gig businesses nationwide.
The New South Wales government maintains that multinational companies must meet the same…: The New South Wales government maintains that multinational companies must meet the same tax standards as local businesses.
Sources checked by our analysis pipeline: 1
The rideshare behemoth Uber has suffered a bruising loss in Australia’s high court that will cost it more than $80m in unpaid taxes.
The court on Wednesday dismissed Uber’s claim it was not liable to pay payroll tax in New South Wales after it argued that it does not employ drivers and claimed that money paid to its drivers were not wages under state law.
In a six-to-one decision, the high court found that Uber is liable to pay $81m for the tax years from 2015 to 2020.
But the ruling is likely to leave the multinational with a significant bill for subsequent years, pushing the total well over $100m.
Uber was initially successful in appealing against the NSW chief commissioner of state revenue’s assessment but Wednesday’s ruling spells the end of the company’s legal avenues.
Six of seven justices agreed to dismiss the high court appeal, saying Uber’s drivers were employees and the money paid to them was wages.
“Uber has structured its rideshare system business so payments from riders are funnelled through it,” the majority said in the…
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