Uber Loses Australian High Court Appeal, Faces $81m Tax Bill

Uber has been ordered to pay A$81 million in payroll tax to the New South Wales tax authorities after Australia’s High Court dismissed the ride-hailing company’s appeal against the tax assessment.

The ruling, delivered on Wednesday, November 4, 2026, followed a six-to-one decision by the court, which determined that payments made to Uber drivers qualify as wages under the state’s payroll tax laws.

The dispute covered six tax assessments for the 2015 to 2020 financial years.

Uber had argued that it did not directly employ its drivers and merely acted as a payment collection agent, transferring fares to drivers after deducting its service fees.

However, the majority of the justices rejected the company’s argument, ruling that the payments were connected to the driving services provided under its contractual arrangements.

The court also noted that Uber exercised substantial control over passenger fares before transferring the money to drivers, including the ability to deduct service fees or adjust and cancel fares.

The decision brings an end to Uber’s legal challenge against the tax assessment, which was initially issued by the New South Wales Chief Commissioner of State Revenue.

The company could face additional financial obligations for subsequent tax years, potentially pushing its total liability beyond A$100 million.

The ruling is also expected to have wider implications for Australia’s gig economy, particularly businesses that rely on independent contractors and digital platforms.

New South Wales Finance Minister Courtney Houssos welcomed the decision, saying payroll tax revenue helps fund essential public services.

She maintained that businesses operating in the state should fulfil their tax obligations.

The judgment could influence how other Australian states interpret payroll tax legislation concerning companies that engage workers through contractual arrangements.