How much to tip in Australia?


What do economists suggest? Nicholas Erow, a researcher in labor economics at the University of Melbourne, says economic models surprisingly tell us little about tipping.

“In economics, we don’t know what the ideal or optimal tip amount is, nor what sectors need to be tipped the most,” says Herault. “But if we consider tipping as a way to raise salaries for low-wage jobs, it makes sense to prioritize low-wage sectors such as hospitality and retail services.”

Where and how much to tip?

According to payment platform data Zeller, Australians tip, but Tasmanians are the most generous of all states and territories. The average tip is $16.06 and can fluctuate. Based on specific state hospitality culture and customer serviceThis may come as a surprise to some if the last time you tipped was…never.

Musson recommends categorizing by service and experience. Dinner is 10% for him, but the standard $5 is enough for the bell clerk. If the taxi driver opens the car door for you, he’ll probably give you $5, or if it’s a long ride that requires you to carry your stuff in the trunk, he’ll give you $10. A food delivery employee on a bike in the pouring rain could spend a few more bucks. If you want an amazing massage, consider adding $5-$10 to your bill.

Joshua McNicol, Zeller’s director of growth, says chronically non-tipping isn’t breaking the rules just because “there are no tipping rules.”

According to Zeller data, tipping is generally 7% across Australia, but it’s still entirely based on service standards, which is highly subjective.

McNichol said Australians have historically tipped more in fine dining restaurants, but they are starting to see growth in smaller or lower priced restaurants. The COVID-19 collective struggle may be the reason behind this. “The small token in the offering is a way it can show its support…to the staff and industry that have suffered most in the past few years,” McNichol says.

He says tipping is also becoming more common thanks to unobtrusive tipping methods such as QR code ordering apps and money transfer systems. We are slowly eliminating ’embarrassing situations and undue pressure’ and giving our customers freedom of choice.

Technology cannot eliminate awkwardness completely. Even if your establishment doesn’t use an ordering app with a built-in tip option, pressing “tip” or “no tip” on the EFTPOS machine will have to endure waiters watching.

My friend wants to tip, but I don’t want to, what should I do?

The advice is unanimous: leave an amount that you feel comfortable with regardless of your friend’s choice (even if it’s nothing). The tips themselves cannot be treated as universal, as everyone occupies a different financial situation.

From both an etiquette and economic standpoint, tipping in Australia is a personal choice and does not determine the fate of the employee. So there’s no need to start an argument, he advises Musson.

McNichol said that digital payment methods have changed how groups tip. With split bills and auto-tips calculated at the end of the transaction, you can pay as much as you want without ever announcing it to the world.

Economist Herault tends to disagree on this point, saying that eliminating the awkward moment of going around a digital card reader and entering numbers actually makes it smoother thanks to the tactile feel of cash. It states that you can tip. Cash can be handed directly to the waitstaff at your discretion.

So when it comes to group tips, leave as much as you want and choose the least publicized payment method.

Are there any drawbacks to chips?

I want to know that if I leave the waitstaff an extra $10, that money goes into their pocket, not the billionaire CEO of the restaurant. At best, tips are evenly distributed, but at worst they are absorbed by restaurants and businesses, said Dario Mukich, executive director of the National Trade Union.

When in doubt, Musson recommends handing cash directly to the server along with a simple but meaningful ‘thank you for taking care of me’.


At Uber, 100% of all tips go to the designated driver, said Emma Foley, head of drivers at Uber ANZ. Other companies may also guarantee this, but others (particularly bars and restaurants that use ordering apps such as Mr Yum or me&u, which usually do not designate waiters) may not.

An over-reliance on tipping has also set a precedent in Australia, which is unlikely to result in significant pay increases for employees, Mujkic said.

“The more a hospitality worker has to rely on tips, the more likely they are to be harassed by customers or have their wages stolen from a bad boss. job security,” says Mujkic.

“We should never move to an American-style system where tips replace wages.”

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How much to tip in Australia?

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