Australia's High Court ruled Uber owes $81 million in New South Wales payroll tax, rejecting its argument that drivers are independent contractors. Australia's High Court has ruled that Uber owes $81 million in New South Wales payroll tax, rejecting the ride-hailing giant's long-running argument that its drivers are independent contractors rather than employees for tax purposes. The decision closes a case watched closely across the country's gig-economy sector after years working its way through the courts.

The ruling means Uber must treat driver payments as wages under NSW law, triggering the backdated tax bill and setting a benchmark other states may follow when assessing similar platforms. Lawyers said the judgment could expose other on-demand delivery and ride-share operators to comparable liabilities if their contractor arrangements are structured the same way, prompting the whole sector to study the decision closely.

Unions and gig-worker advocacy groups welcomed the decision as a step toward greater protections for drivers, while industry groups warned it could raise costs for both platforms and customers. Uber has not said whether it will seek any further legal avenue to challenge the ruling.