The big question in the appeal of Uber’s tax case is how drivers get paid
How the NSW Court of Appeal defines the fares Uber drivers earn will have implications across the gig economy.
How Uber drivers are paid is central to the NSW Chief Commissioner for State Revenue’s appeal against the rideshare company’s initial court victory — an outcome that could have widespread implications for the gig economy.
On the second and final day of the appeal against a September 2024 NSW Supreme Court ruling, barristers for the government department set out the basis of their challenge.
Crucially, in his September decision, NSW Supreme Court Judge David Hammerschlag took a slightly different stance from previous similar rulings on a key question: whether payments Uber drivers receive are “for or in relation to the performance of work” — a phrase central to both the case and the appeal.
In his ruling, Hammerschlag said that Uber acts as a “payment collection agent” and is therefore not subject to payroll tax. His decision revoked six payroll tax assessments issued to Uber by Revenue NSW in February 2021, covering financial years 2015 to 2020 and totalling $81.5 million.
