Resources: News Alerts

In August 2025, the New South Wales Court of Appeal (NSWCA) handed down the landmark decision of Chief Commissioner of State Revenue v Uber Australia Pty Ltd [2025] NSWCA 172 which found Uber Australia Pty Ltd (Uber) was liable to pay $81.5 million in payroll tax.

Under the Payroll Tax Act 2007 (NSW) (Payroll Tax Act), employers are liable for payroll tax levied on the ‘taxable wages’ paid or payable to employees and contractors, subject to some exemptions. In this decision, the NSWCA have commented on what may amount to a ‘taxable wage’ specifically in relation to gig-economy workers where a relevant contract exists to supply services to the employer.

In 2021, the Chief Commissioner of State Revenue (Chief Commissioner) issued Uber a payroll tax assessment of $81.5 million for the 2015 to 2020 financial years. Uber objected to the Chief Commissioner’s assessment and the Supreme Court of New South Wales found that Uber was not liable for the payroll tax.

On appeal, the NSWCA overturned that decision.

The NSWCA unanimously held that the Uber drivers’ contracts were “relevant contracts” for the purposes of the contractor provisions under the Payroll Tax Act. The NSWCA held that:

• Uber drivers’ services were “in relation to the performance of work” for Uber;
• payments to Uber drivers were collected from riders and remitted to drivers through Uber and as such were amounts “paid or payable” by Uber; and
• the use of a personal car and the rating services performed by Uber drives and riders were not ancillary to the performance of work.

The NSWCA concluded that the payments amounted to taxable wages and Uber was liable to pay $81.5 million in payroll tax to the NSW Government.

This decision further closes the net on gig workers and other employee-like workers. The deeming provisions in payroll tax legislation were intended to capture payments to contractors and other workers with employment-like relationships.

While this decision involves the legislation in NSW, we note that efforts were made in 2007 to harmonise payroll tax legislation, with the States and Territories adopting similar legislation or amendments to legislation to align provisions.

Information provided in this news alert is not legal advice and should not be relied upon as such. Workplace Law does not accept liability for any loss or damage arising from reliance on the content of this alert, or from links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.