Every week we will break down, debunk and demystify your rights as a shopper in Australia. This week we are looking at the practice of tipping, and how the regulations work in Australia.
We all know life is getting more expensive than ever before. It is more important than ever to stretch every dollar you make.
That’s why each week we’ll answer a question surrounding what shoppers are – and aren’t – entitled to when dealing with retailers and manufacturers.
Long time reader, first time writer.
Eating out recently I’ve noticed a lot of restaurants are using QR codes for ordering.
Every time I am asked if I want to leave a tip and if it’s great service I am happy to give a tip at the end, but in these situations I am getting less and less face time with servers, so I have trouble working out where the value is if they aren’t giving me a great wine recommendation or special meal to pick out.
What’s the go? It’s a cost of living crisis, should I be tipping to help support the hospitality economy? Or is this a money grab of ease?
Hi there – great question.
Tipping in Australia has always been a controversial practice.
Some say it is a way to reward those who offer good service – others say it encourages hospitality businesses to offer lower wages.
The fact is in Australia tipping is entirely voluntary.
It doesn’t matter how good the service is, you are never obliged to tip.
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A lot of businesses may include a “gratuity” section on a bill to be filled in, or hand you an EFPTOS machine that has a window for a tip. You don’t need to fill it in.
There’s no requirement that says businesses cannot ask.
So, to answer your question: Should you be tipping because we’re currently in a cost of living crisis? No – you should only tip because you want to.
According to the tax office, any tips received by staff are to be declared as income tax.
There aren’t specific rules on how businesses should distribute tips.
Some collect it all and then distribute it evenly to ensure back-of-house staff receive some – others allow staff to pocket what is tipped directly to them.
Fundamentally, Australia has one of highest minimum wage requirements in the world and one of the strongest systems of enforcing that wage is paid to workers.
We don’t need to rely on the goodwill of customers to ensure workers are paid fairly.
But don’t let that stop you from rewarding good service where you see fit.
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The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
