Australia’s High Court has dismissed Uber’s appeal over New South Wales payroll tax, leaving the company liable for assessments of about $81.5 million for driver payments made between the 2015 and 2020 financial years. Interest and the legal costs of the state’s Chief Commissioner of State Revenue are also at issue, but the total including those amounts is not specified.

Why the fares count as wages for tax

The dispute turned on how NSW tax law treats money paid under certain work contracts. Uber argued it acted as a payment collection agent: it collected fares from passengers, deducted service fees and passed the rest to drivers, rather than paying them wages.

The High Court rejected that argument. It found that Uber’s contracts required drivers to transport a passenger once they accepted a ride request. For the purposes of the relevant payroll tax rules, the payments for completed rides were therefore deemed to be wages. The ruling was by majority, with one of the seven justices dissenting.

That tax treatment does not, by itself, establish that drivers are employees under industrial relations law. IBTimes Australia said the ruling did not indicate a change to drivers’ pay, conditions or classification under that separate law. The decision concerns Uber’s tax liability, not a fine for wrongdoing.

How the case reached the High Court

Revenue NSW issued six assessments covering the disputed payments. Uber objected in April 2021, but the Chief Commissioner rejected its objection in August 2022. In September 2024, the NSW Supreme Court ruled for Uber and revoked the assessments.

The state appealed, and the NSW Court of Appeal unanimously reversed that decision in August 2025, finding Uber liable. The High Court’s ruling now rejects Uber’s further appeal and ends the case; Australia’s highest court has no further appeal above it.

WAtoday reported that Uber had made no provision for the potential $81.5 million liability in financial results lodged with the regulator earlier in 2026. The company had not publicly responded in the reports reviewed by IBTimes Australia; WAtoday said it had been contacted for comment.

Why other businesses are watching

The NSW government welcomed the decision. Finance Minister Courtney Houssos said it reflected the government’s commitment to upholding the state’s tax system.

Bran Black, chief executive of the Business Council of Australia, warned that the outcome could have implications beyond Uber. He said businesses in health and care, financial services and technology platforms could also face payroll tax on customer payments passed to independent service providers, with possible costs passed on to customers.

The ruling may guide how similar contractor arrangements are treated, but its reach is not yet clear. IBTimes Australia said the full reasons for the High Court’s judgment will determine how far the reasoning extends, including to other states with similar laws.