Uber rideshare and food delivery services could increase up to 85 per cent if the proposed gig economy law gets passed by the Labor government.

The Closing Loopholes bill, currently in a Senate inquiry, will let the Fair Work Commission set minimum pay and conditions for all workers on a digital platform like Uber.

Gig economy workers could receive a $400 million wage boost, but Uber Australia warns these extra costs will be passed on to consumers.

Uber modelling has shown that by paying casual, penalty, night and public holiday rates, prices would increase by 60 per cent for rideshare and 85 per cent for food delivery services. They believe this would result in 40 million hours of lost work because of lower demand.

Uber Australia General Manager Dom Taylor said Australians are turning to gig economy work to deal with the cost of living, putting this at risk if there is less demand.

“There will invariably be people that stop working but there will also be people that will go from 15 hours to 10 hours, from 35 to 25, etc and ultimately this is money that we know Aussies need,” he said.

Workplace Relations Minister Tony Burke said the absence of minimum conditions and standards has to stop.

“The important thing for the government is we no longer have a situation where Uber drivers have no minimum standards at all,” he said.

The Senate is due to finalise their inquiry by 1 February 2024.

Photo: Uber Eats Subway Restaurant is available HERE and is used under a Creative Commons licence. This photo has not been modified.