Media Release

1.8 million Aussies pressured to tip: EFTPOS machine to blame

  • 3 in 5 Aussies reluctant to tip, according to new research
  • The presence of an EFTPOS machine has influenced many Australians to tip
  • Top places and situations where Aussies tip

18 May, 2018, Sydney, Australia – Unlike in the United States, tipping isn’t an integral part of Australian culture, but new finder.com.au research shows 1.8 million diners have felt obliged to tip anyway.

The survey of 1,845 diners shows one in nine (11%) have felt pressured when presented with an EFTPOS machine showing ‘$0.00’ after their meal, and half of these diners have left a tip due to this pressure.

However, the majority (51%) of Australian diners simply refuse to tip.

The main reason Australians don’t tip is because they believe they’re already paying a fair price for their dining experience (28%).

A further 14% say they don’t tip because they believe hospitality staff get paid well enough, and 10% of respondents said they don’t tip for a variety of reasons.

Some respondents went as far as to say “We’re not the United States”, stating that tipping isn’t part of local Australian culture.

Bessie Hassan, Money Expert at finder.com.au, says there are many reasons why Australians may not feel inclined to tip.

“Whether it’s not embedded in our culture, a belief that hospitality workers receive a fair wage, or simply that Australians don’t have the surplus cash or are struggling to pay off personal debt, there are multiple reasons why Aussies don’t tip,” she says.

Ms Hassan says with a minimum wage of $18.29, Australians may not feel required to leave a bonus for hospitality staff.

“Most people dine out in the evening or on the weekends which are time periods often dominated by casual workers who receive a 25% loading, which boosts the minimum wage to over $22 per hour.

“Unlike in the United States, Australian workers do receive a fair wage and this is well-known among locals.

“Rather than tipping, Aussies may be more likely to thank staff or the venue on social media if they have a great experience, perhaps even leave a glowing online review.

“Social praise and reviews speak volumes of the venue and their staff, and could be more valuable to the business in the long-term,” Ms Hassan says.

However, the research shows 22% of Australian diners will tip but only if the service is exceptional with the main tipping destinations being at restaurants, cafes and taxis.

“If you feel compelled to tip, you may want to shell out around 5-10% of your total bill as a guide.

“While it’s not expected, it’s certainly appreciated in service industries,” she says.

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

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More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

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