The Supreme Court of New South Wales ruled in favor of Uber Australia Pty Ltd on November 2, 2024, upholding its objection to six payroll tax assessments totaling $81,515,923. The Chief Commissioner of State Revenue had assessed these taxes for the period between 2015 and 2020. This decision represents a significant legal victory for Uber.
Chief Justice Hammerschlag determined that Uber was not the party paying the drivers in a manner that would trigger payroll tax obligations. The court characterized Uber as a 'mere payment collection agent' for the drivers, who were paid by the riders directly. This finding is crucial for Uber's business model, which relies on classifying drivers as independent contractors.
This ruling has substantial financial implications for Uber, potentially saving the company tens of millions of dollars in back taxes. It also sets an important precedent for how payroll tax is regulated in regard to the gig economy in Australia. The decision could influence similar cases for other platforms employing contractors in the region.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.