Key Points
- Tipping is voluntary in Australia
- Many people choose to tip hospitality staff
- An acceptable tip for good service is 10 per cent
- Tipping culture has changed in response to the pandemic
A tip is a monetary gift to staff as a reward for good service, paid with cash or through cashless payment systems.
In Australia there is a lot of confusion and disagreement over whether to leave a tip – or what is sometimes called a ‘gratuity’. This stems from the tipping habits we observe overseas.
Do people tip in Australia?
“Tipping is really a cultural issue,” explains Bill Dee who has worked with the Australian Competition and Consumer Commission (ACCC).
“In the US, essentially it’s mandatory. If you go to a restaurant, they actually have ‘gratuity’ on the bill. There’s an expectation too that if you get a cab, you pay a tip,” says Mr Dee.
In Australia, culturally we’ve been more attuned to make tipping voluntary.
Tipping is usually an expression of gratitude for service that goes beyond the ordinary, says Mr Dee.
“In Australia it’s more an expression of your appreciation of better customer service. For example, if you’re in a restaurant and the waiter gives you excellent service and the meal’s great, a lot of people tip to show their gratitude.”
Many believe tipping is unnecessary – that we should avoid imitating countries like the United States, where employment conditions for service staff are vastly different.
You shouldn’t feel obliged to give a tip because of the wage structure we have here in Australia
“Australia has a fairly high minimum wage compared to the rest of the world. Unlike the US where wages are very low and service staff need a gratuity to survive, in Australia it’s up to the person whether or not great service is rewarded with a tip,”says Cam Smith, creator of Australia’s longest-running food show on radio station 3RRR.
After dining out, cash is left on the table, or in a tip jar at the counter. A tip can also be added to any cashless transaction that includes a tipping function.
Restaurant owners are expected to pass tips on to their employees.
Tip jar Source: Getty Images/Toni Faint
How much should we tip?
The sum is entirely up to the individual, but there are some guidelines, says Cam Smith.
“It’s easiest to calculate 10 per cent. You can still give more money if you think someone has gone beyond the call of duty,” he says.
But in Australia the standard tip for good service is 10 per cent.
Tipping during the pandemic
A recent survey of diners’ habits revealed how the pandemic has changed tipping culture in a desire to support the hospitality and service industries.
“What we’ve seen is a shift in sentiment,” says Manager of International Markets for OpenTables, Robin Chiang.
“Around 25 per cent of Aussies that we surveyed are now happy to tip after a meal. So that’s been a real change for us in terms of eating out and how we treat our restaurateurs and front-of-house staff.”
The survey revealed that the most regular tippers are under 30.
We see fewer cash tips and an increase in eftpos payments, QR code ordering and the use of ride-sharing and food delivery apps. These usually include in-app tipping features.
Automatic prompts should not influence whether you tip or not.
“That’s not really been a main driver,” says Mr Chiang. “The main reason people do tip is to help out the restaurant industry.”
Taxi drivers do not expect a tip in Australia Source: Getty Images/wagnerokasaki
Tipping for other services
Taxi drivers won’t expect a tip, although it’s common to round up the fare to the nearest dollar.
Hairdressers, beauticians and hotel staff do not expect tips.
Food delivery drivers who work in the gig economy don’t enjoy the same rights as other workers. Many people choose to supplement their wages with a tip on delivery.
While opinions and habits vary, always keep in mind that in Australia, tipping is entirely up to you.