Tipping tensions rise as Australians push back
Resistance to tipping continues to grow in Australia, with new research highlighting a strong cultural aversion to the practice, particularly in hospitality.
According to a survey by Money.com.au, 43% of Australians refuse to tip at hospitality venues, saying it’s not part of the country’s service culture. Finance expert Sean Callery told Yahoo Finance that venues encouraging tipping risk alienating customers.
"It's just worth remembering that it is an optional thing, and if you feel like there's not a justification for adding a tip, you just have to stick to your guns," Callery said.
Digital payment systems are partly to blame for the shift, with patrons now regularly prompted to tip via card terminals or QR code ordering systems—sometimes before food or drinks are served.
"When you've not yet had the opportunity to gauge whether the service, the quality of the food, and all the things you would typically associate with for whether you would tip or not, it's slightly presumptuous that you would do so, so early in your experience at a hospitality venue," Callery added.
The research also revealed that 18% of Australians feel uncomfortable when prompted to tip, with many conceding to social pressure. While 29% said tipping depends on the occasion, only 7% enjoyed rewarding good service, and 4% believed it was necessary due to staff wages.
Generational divides were apparent—Millennials were the most willing to tip, while 50% of Baby Boomers rejected the practice altogether. Callery attributed this to younger Australians being more likely to have worked in hospitality roles.
The debate has been inflamed on social media, where many criticise tipping as an unwelcome import from the United States. One Reddit user wrote, "Australia has fair wages — tipping isn’t part of our culture and it shouldn’t become one."
Others expressed frustration at being asked to tip before any service had been delivered, with one writing, "Good service isn’t a bonus, it should be the baseline. Price it in and stop the guilt trip."
Callery said hospitality venues should reconsider how they approach tipping to avoid deterring patrons.
"The genie's out of the bottle for how we pay at restaurants, but it just comes down to whether venues take the hint and provide a slightly more subtle way of generating tips for their staff," he said.
Jonathan Jackson, 19th June 2025
