Are Uber drivers employees in Australia?

On the basis of the Fair Work Ombudsman's assessment, the drivers are self-employed independent contractors.



In 2026, the status of Uber drivers in Australia has evolved into a "hybrid" or "third-way" model following significant legislative reforms. Traditionally, Australian courts and the Fair Work Commission classified Uber drivers as independent contractors rather than employees. However, the Closing Loopholes Act introduced in 2024 and 2025 gave the Fair Work Commission new powers to set minimum standards for "employee-like" workers in the gig economy. This means that while drivers are still not "full-time employees" (they don't get sick leave or annual leave), they now have legal protections that were previously only available to employees, such as a minimum hourly rate, protection against unfair deactivation, and the right to collective bargaining. This Australian approach aims to provide the "flexibility" of contracting—allowing drivers to choose their own hours—while removing the "vulnerability" often associated with gig work. For your business data research, Australia is now seen as a global leader in balancing the needs of tech platforms with the social safety net, effectively moving away from the binary "employee vs. contractor" debate that has dominated the US and European legal landscapes.

People Also Ask

Because most ridesharing services consider their drivers to be independent contractors, those workers usually aren't entitled to the minimum wage, overtime pay, or other employment protections.

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If you work as a driver for Uber, the company classifies you as an independent contractor for tax and other legal purposes. This means you get none of the legal protections given to employees under federal labor law, such as the right to a minimum wage, overtime pay, and the right to unionize.

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Yes. According to the ATO, any Australian resident must declare in your tax return all income you earned anywhere in the world during that tax year. We expect all of our partners to meet their tax obligations like everyone else, including declaring Uber earnings in your individual tax return.

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In 2018, Australia had 62,000 Uber drivers on its roads, a figure that would have significantly increased over the past couple of years. As we've already mentioned, Uber drivers receive an average hourly wage of $31.75.

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Uber Eats drivers are independent contractors that provide a service. They are not employees of the company. Therefore, as an Uber Eats driver, you do not automatically have tax withholdings deducted from your pay throughout the year. So come tax season, you'll owe the government taxes.

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Employee vs. If Uber drivers are employees, Uber would have certain responsibilities to them under federal and state employment laws. These include laws that address issues like the minimum wage, overtime compensation, employment discrimination, sexual harassment, and the right to unionize.

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Drivers using Uber are independent contractors who work on their own schedule with flexible hours.

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Average Uber Driver hourly pay in Sydney, NSW is approximately $28.89, which is 14% below the national average. Salary information comes from 4 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.

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As a taxi driver, you are considered self-employed if you set your own hours and no one supervises how you do your job. Even if you rent your cab from a fleet and use a dispatcher, you are considered an independent contractor. You will need to take every possible deduction on your taxes to lower your tax bill.

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“This economic opportunity has excluded women — not purposefully, but women have self-selected out of it,” said Nick Allen, a cofounder and former CFO of Sidecar who left to start Shuddle, a ride service for children. “And the number one reason they do that is the perception of safety or lack thereof.

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Of course, some driver deactivations make sense. Uber and Lyft have both said it's their policy to fire drivers who are accused of assaulting or harassing drivers, and they both allude to cutting drivers with ratings below around a 4.5 or 4.6, which can weed out bad drivers.

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Earnings are decreasing because Uber and Lyft keep changing the rates - keeping prices the same for passengers, lowering pay for drivers and pocketing the difference. As Uber and Lyft continue to make more, drivers continue to make less.

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Uber has a tipping section on their app which I usually ignore. Some restaurants have a surcharge on public holidays or weekends of 10% or so but it is clearly stated on their menus and used to help pay staff ?penalty rates?. Otherwise tipping is not necessary. Bottom line, do what you like but it is not necessary.

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