Uber’s Australian arm is pulling in more cash than ever, yet its profit line has been hammered by mounting costs tied to a major tax dispute. Local revenue climbed 21.7% to $4.6bn last year, underscoring strong demand for its services.
Net profit slid 59% to just $8.73m after the company booked $2.07bn in administrative expenses during its High Court fight with the NSW tax authority.
Regulatory filings show these administrative expenses cover far more than legal fees, stretching from office supplies and professional services to depreciation charges. The total cost of providing services also jumped, rising from $1.82bn to $2.50bn in the year to December 31 as the business scaled.
Revenue NSW first issued Uber with a notice in February 2021, alleging it should have paid payroll tax on payments made to its driver partners. That assessment comes with a sizeable $81.5m tax bill attached.
Tax authorities argue that payments to driver partners fall within the payroll tax net, while platform operators such as Uber typically treat drivers as independent contractors. The clash now sits before the High Court, turning a technical payroll tax interpretation into a high-stakes test case for the gig economy.
A ruling in favour of Revenue NSW would not only crystallise Uber’s alleged $81.5m liability, it is also likely to influence how similar platforms handle tax and labour costs across Australia.
