Uber pays its drivers ‘wages’ and is liable for $81m payroll tax bill, Australia’s high court rules
News Source
•Wed, 04 Nov 2026 02:15:01 GMT
📰 What Happened
Australia's High Court has ruled that Uber pays its drivers “wages”, meaning the company is liable for about $81 million in payroll tax. The decision ends a long fight over whether drivers are employees or independent contractors.
Payroll tax is charged to employers on the wages they pay. If drivers count as workers, Uber must pay the tax on their earnings.
The bill covers work done in one state, but the ruling could encourage other states to seek similar payments from other gig apps.
🔍 The Backstory
Unions have argued for years that gig workers deserve minimum pay, sick leave and retirement savings. Uber says drivers value the freedom to choose when they work.
Courts around the world have reached different answers. Britain's Supreme Court ruled in 2021 that Uber drivers are workers, while other countries have treated them as contractors.
The case matters because gig apps are built on the contractor model, which keeps costs low. A change in tax treatment can quickly become a change in how the business runs.
🎯 Why It Matters
The ruling could change pay, tax and protections for tens of thousands of gig workers, and raise costs for the apps that depend on them.
Australia's High Court has ruled that Uber pays its drivers “wages”, meaning the company is liable for about $81 million in payroll tax. The decision ends a long fight over whether drivers are employees or independent contractors.
Payroll tax is charged to employers on the wages they pay. If drivers count as workers, Uber must pay the tax on their earnings.
The bill covers work done in one state, but the ruling could encourage other states to seek similar payments from other gig apps.
Unions have argued for years that gig workers deserve minimum pay, sick leave and retirement savings. Uber says drivers value the freedom to choose when they work.
Courts around the world have reached different answers. Britain's Supreme Court ruled in 2021 that Uber drivers are workers, while other countries have treated them as contractors.
The case matters because gig apps are built on the contractor model, which keeps costs low. A change in tax treatment can quickly become a change in how the business runs.
The ruling could change pay, tax and protections for tens of thousands of gig workers, and raise costs for the apps that depend on them.