New research from Money.com.au has revealed 43 per cent of Australians refuse to tip at hospitality venues even when prompted, concluding its ‘not part of Australian culture’.
The nationally representative survey of more than 1,000 Australians asked participants how they feel when prompted to tip at cafés, restaurants or bars — whether through QR code checkout, card payment terminals, or when presented with a bill.
In total,18 per cent of Australians felt uncomfortable about being asked to leave a tip but will do it if they feel pressured.
Money.com.au’s finance expert, Sean Callery, explained Australians are resisting the shift toward US-style tipping, particularly when it feels more like an obligation than a genuine choice to reward good service.
“Tipping might be the norm in places like the U.S., but Aussies aren’t buying into it — even though more venues are adding tip prompts of 15–20 per cent at checkout. It feels automated and forced. Most Australians expect hospitality staff to be paid fairly by their employer for providing a service, not subsidised by the customer,” he said.
The survey found 29 per cent of Australians said depending on the occasion, they do not mind tipping, with seven per cent saying they like tipping as a way of rewarding good service and only four per cent saying they always tip because they believe hospitality staff deserve extra pay.
Generationally, Baby Boomers were found to be the most opposed to tipping, with 50 per cent saying they refuse to do it because it has no place in Australia.
Generation X is close behind at 40 per cent but is also the most likely generation to tip if they feel pressured at 22 per cent.
Overall, millennials are the most tip-friendly with 15 per cent saying they always support tipping, either because they believe it’s a nice way to reward good service or because hospitality staff deserve extra pay.
But more than any other age group, a third of Gen Z (33 per cent) say they do not mind tipping and are happy to do it – if the service is good.
Despite these findings, the recent Zeller’s 2024 Australian Tipping Report revealed that, regardless of ongoing cost-of-living pressures, Australians are tipping more frequently and generously than ever before.
The average tip left after a meal increased in value by 25 per cent year-on-year, and electronic payments played a key role in this trend.