Uber’s payroll tax win sets the stage for a bigger regulatory battle
Legal experts say that Uber's victory in NSW could be the start of a drawn out legal conflict — which might go all the way to the High Court.
A decision this month by New South Wales Supreme Court Judge David Hammerschlag, which found that Uber does not pay drivers wages, could either be a major setback for NSW's Chief Commissioner of State Revenue or the beginning of a much larger legal battle.
In his ruling, Hammerschlag said Uber acts as a “payment collection agent”, and is therefore not subject to payroll tax, revoking a 2018 audit that resulted in an $81.5 million tax bill issued to the rideshare company in 2021.
On one side of the dispute is a famously litigious company. On the other, a government department with over $80 million to lose.
A spokesperson for Revenue NSW told Capital Brief, “The Chief Commissioner is now considering the outcome of the decision carefully.” Uber, despite its win, has yet to comment.
