The Guardian reported on 4 November 2026 that the High Court of Australia dismissed Uber's appeal over New South Wales payroll tax. Six of the seven justices held the company liable for 81 million Australian dollars for the six financial years to 30 June 2020. Justice Simon Steward dissented. Uber must also pay the costs of the Chief Commissioner of State Revenue.
The ruling
Uber Australia Pty Ltd argued that it does not employ drivers and that money paid to them was not wages under state law. It put itself forward as a limited payment collection agent for the driver.
The majority wrote this of the system. "Uber has structured its rideshare system business so payments from riders are funnelled through it. That gives Uber substantive control over the fares before they are remitted to drivers, allowing Uber to deduct its service fee, or change or cancel the fare entirely."
Chief Justice Stephen Gageler wrote that payroll tax laws were adjusted late in the last century, in more than one state, to take in revenue from contracts meant to disguise the true nature of the working relationship. He found a direct relationship between a driver's performance and the fares Uber paid for that work, so those fares were deemed wages. "The contractor provisions … have continued 'always speaking in the present' to participants in the gig economy which emerged in this century."
The joint reasons of the other five justices in the majority treat the driving as a service supplied to Uber under a relevant contract. "Drivers clearly 'supply' a service to Uber by doing something that is necessary for Uber to derive service fees and to continue its business. The remitted amounts from Uber to a driver are paid or payable for or in relation to the performance of work (driving services) relating to a relevant contract … and are therefore deemed to be wages."
Earlier hearings
The Chief Commissioner assessed Uber on the fares passed on to drivers. On 6 September 2024, Andrew Hammerschlag, Chief Judge in Equity in the Supreme Court of New South Wales, revoked those assessments. The amounts, he held, were not paid for or in relation to the performance of work, and were not wages. On 1 August 2025 the Court of Appeal allowed the Chief Commissioner's appeal. The High Court has now dismissed Uber's further appeal, in Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2026] HCA 40.
After the judgment
Payroll tax is a key part of the New South Wales tax base. The state government noted that only about one in 20 companies meet the threshold to pay it.
Courtney Houssos, the finance minister, put the ruling in these words. "It helps fund essential services that families and households rely on. Local businesses pay their fair share. Uber should pay their fair share too."
Uber's statement respected the decision. "This decision could have significant unintended consequences beyond rideshare, affecting intermediary business models across the economy, including mortgage brokers, service-based marketplaces, medical practices and other healthcare services. It sets an alarming precedent at a time when businesses across Australia already face significant red tape and increasing cost pressures."
The company urged state governments to modernise payroll tax laws to reflect how digital platforms operate, give businesses certainty, and ensure a level playing field across the point-to-point sector.
Michael Kaine, national secretary of the Transport Workers' Union, called the result a "critical reality check to companies seeking to skirt our laws". "Even companies who engage workers who may not be employees will have to pay their fair share."