High Court Orders Uber to Pay $81 Million in Taxes

The High Court of Australia ruled Wednesday that Uber Technologies Inc. is liable for $81 million in unpaid payroll taxes in New South Wales for the financial years 2015 to 2020. In a six-to-one decision, the court dismissed Uber's argument that it acted only as a payment collection agent and that its drivers were not employees.

The majority found that Uber's business structure grants it substantive control over fares, which classifies payments to drivers as wages under state law. While the immediate bill is $81 million, the total cost is expected to exceed $100 million once subsequent years are included.

Uber Technologies Inc. responded that the decision sets an alarming precedent that could impact other intermediary business models across the economy. New South Wales Finance Minister Courtney Houssos stated that the tax helps fund essential services and that Uber should pay its fair share. The Transport Workers' Union described the ruling as a critical reality check for gig economy companies, with National Secretary Michael Kaine arguing that Uber's business model was created to distance the company from legal obligations.