Uber Payroll Tax Implications

On the first of August, the NSW Court of Appeal handed down its decision in Chief Commissioner of State Revenue v Uber Australia Pty Ltd [2025] NSWCA 172 (“the Uber Decision”) finding that Uber was liable for over $80 million in unpaid payroll tax and interest. While the case focuses on the ‘gig-economy’ platform, there are some key takeaways for all businesses.

While the Uber Decision relates to a different industry and different set of circumstances, given that it heavily referenced the Thomas and Naaz decision, it is difficult to ignore the implications for medical practices. Though, comfort should be taken in the reinforcement of known principles in the industry. If you have already sought appropriate accounting and legal advice in relation to your operations, the Uber Decision is unlikely to change the way you operate. It has largely reinforced that a well-structured facility and services agreement which reflects your day-to-day operations is fundamental.

What are the key takeaways?

• Agreement terms and conditions are key: The terms and conditions for Uber’s drivers were ultimately deemed to be ‘relevant contracts’ for payroll tax purposes as the services provided by the drivers were deemed to be ‘for or in relation to the performance of work’. For example, the drivers were required to comply with various obligations including choosing the most effective and safe manner to perform the services and rate passengers, and Uber ultimately benefitted from those services provided by the drivers. Uber’s terms and conditions contained several indicators of a ‘relevant contract’, particularly due to the controls imposed by Uber.
• Payment of ‘wages’: Uber collected all of the fees on behalf of the drivers, deducted its fees and then remitted the balance to the drivers. This will sound familiar with Thomas and Naaz highlighting the collection of fees and subsequent payment to doctors ultimately being deemed ‘wages’ in exchange for the services provided.
• Benefit of services: the Court found that Uber’s business model required drivers to perform the services, and without the benefit of those services Uber would not receive a financial benefit. Similar risks can exist in practices where the practice is seen as receiving a benefit from doctors’ services.

What should you do?

• Ensure consistency – make sure you review your operations and that they are consistent with your agreements and accounting processes.
• Have signed agreements – we understand that it can be difficult to get people to sign on the dotted line, but making sure you have properly drafted and signed agreements will provide greater protection.
• Get advice – if you haven’t already spoken with our team, get in touch so that you can have peace of mind.

Please click here to learn more about our recommendations for the content and nature of facilities and services agreements between a practice and independent health practitioners. 

We can help you

If you have any questions, or would like more information about how we can assist you or your practice, please call 1800 867 113, or to organise a confidential discussion at a time that suits you, please click here