Uber will be required to pay an $81 million payroll tax bill after Australia's High Court dismissed the company's appeal, ruling that payments made to its drivers qualify as wages.
The High Court's decision means the ride‑hailing giant must settle the tax liability in full, ending its legal challenge that had sought to treat drivers as independent contractors rather than employees for tax purposes.
Under Australian law, payroll tax is levied on wages paid to employees, and the court found that the nature of Uber's payments to drivers meets the definition of wages. This assessment aligns with the tax authority's view that drivers are effectively part of Uber's workforce.
The ruling is likely to have broader implications for gig‑economy platforms operating in Australia, as it clarifies the legal criteria for classifying workers and may prompt similar tax assessments for other companies that rely on contract‑based labour.
Australia's High Court, the nation's highest judicial body, delivered the judgment, underscoring the growing scrutiny of gig‑economy business models and their obligations under existing tax frameworks.
<small>Source: Punch Nigeria — read the original story there.</small>