Uber must pay the state of NSW at least $81 million in payroll tax, almost 10 times its local profits last year, after the ride-share giant lost a final appeal to the High Court, in a decision that could dramatically increase the tax burden on gig economy companies.
The High Court ruled on Wednesday that the fares Uber collects on its drivers’ behalf are in fact “wages” under NSW tax law, meaning payroll tax applies. Uber is therefore on the hook for the full $81.5 million in payroll tax that NSW authorities have ordered it to pay, on fares the company collected between 2015 and 2020.
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