Tipping culture in Australia: The American custom Aussies are turning their backs on in the cost of living crisis

Tipping at restaurants has become more common in Australia in recent decades despite not being customary like it is in the United States.

But new research shows Australians are increasingly less likely to leave a tip when eating out compared to four years ago.

A Finder survey of 1029 people revealed that seven per cent, the equivalent of 1.46 million Aussies, are regular restaurant tippers.

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That is a 20 per cent drop in the number of diners who said they always left a tip in July 2021.

Rebecca Pike, money expert at Finder, said the ongoing cost of living crisis means finding the cash needed for a tip is tough ask.

“The majority of households are stretched to their limits financially at the moment – so finding an extra five to 20 per cent on top of a bill is out of the question for many,” she said.

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Tipping became common in America due to the low wages hospitality workers earn there, but this isn’t the case Down Under.

“In the US, restaurant waitstaff often rely on tips, there are still 14 states where servers earn as little as $3.36 (US$2.13) per hour, unlike Australia’s minimum wage of more than $24,” Pike explained.

However, Aussies are more likely to consider tipping if the service was particularly good, with 25 per cent of people tipping in this situation at fancy restaurants and 27 per cent at normal restaurants.

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Restaurants are the main businesses where Aussies leave a tip, however they will give one to taxi and ride share services and food delivery services if the service was good.

“Most Aussies just want to pay their bill and be done with it,” Pike said.

If the thought of the added expense of tipping is putting you off going out for a meal, then it’s OK not to leave one.

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”Restaurant owners and staff would rather diners come in and not tip than avoid eating out altogether,” Pike said.

Not tipping isn’t the only way to save money when going out for a meal, other tips Pike suggested include organising pre-drinks, looking out for daily specials like buy-one-get-one-free deals or having a snack beforehand.

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