Guide to Tipping in Australia

2 October 2024

Tipping is a common practice in many parts of the world, but in Australia, it can be quite different. This guide will help you navigate tipping in Australia, covering various situations such as dining out, staying in hotels, using transportation, and other services.

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Understanding the Culture of Tipping in Australia

In Australia, while tipping is not the norm it is becoming more common. It is not the norm because Australians are generally paid what is referred to as a “liveable wage”. The concept of a liveable wage is that employees earn enough money to cover their basic living expenses such as housing, food, transportation, and healthcare. In Australia, the minimum wage is set by the government and reviewed annually to ensure it meets the cost of living. As of 1 July 2024, the national minimum wage is $24.10 per hour or $915.90 per week for an adult.

This approach was put in place by the federal government to help ensure that workers do not need to depend on tips to make ends meet. Because of this, tipping is not expected. Service workers do not rely on tips to supplement their income, so there is less pressure on customers to tip. However, tipping is still a way to show appreciation for excellent service, and it is always welcomed if you feel the service deserves it.

Guide to Tipping

As a guide, exchange rates are approximately:

USD 1.00 = AUD 1.48
EUR 1.00 = AUD 1.65
GBP 1.00 = AUD 1.95
CAD 1.00 = AUD 1.09
JPY 1.00 = AUD 0.01

So, here are some guidelines if you would like to tip in Australia:

Eating Out

Restaurants

Casual Dining: In casual dining settings, tipping is not expected. If you receive good service and wish to show appreciation, rounding up the bill or leaving a small tip (5-10%) is considered polite.
Fine Dining: In upscale restaurants, tipping is more common. Here, leaving a tip of around 10% for excellent service is appreciated. Some fine dining establishments may add a service charge to the bill, so check before tipping extra.

Cafés

Tipping in cafés is not expected. However, if you have a favourite barista who makes your coffee just right, you can leave some change or round up your bill. Cafes may have a tipping jar which will usually be split between all staff members. Leaving the loose change from your purchase can be a nice way to show appreciation for good service.

Bars and Pubs

Bars: Tipping in bars is not a common practice in Australia. If you receive exceptional service or have a friendly chat with the bartender, you might leave some change or round up the bill, but it’s entirely optional.
Pubs: Similar to bars, tipping is not expected in pubs. However, rounding up to the nearest dollar or $5 depending on your spend, can be a nice gesture if you feel inclined.
Bars and pubs may have a tipping jar which will usually be split between all staff members. Leaving the loose change from your purchase can be a nice way to show appreciation for good service.

Public Holidays

During public holidays and busy periods, service staff may be under more pressure than usual. If you feel they have gone above and beyond to provide good service, a tip can be a way to show your appreciation. Staff are usually paid extra to work on public holidays, so check your bill as you may be charged a surcharge to cover this.

Unlike in the United States, Australia has $1 and $2 coins, not notes. So tipping $1 or $2 may feel a bit awkward.

Hotels

Hotel Staff

Porter: Tipping porters is appreciated but not mandatory. If they assist you with your luggage, a tip of AUD 2-5 per bag is a kind gesture.
Housekeeping: Tipping housekeeping is not a widespread practice. If you wish to leave a tip, AUD 2-5 per day is appropriate, but make sure to leave it in a marked envelope or with a note to indicate it’s for them.
Concierge: If the concierge provides exceptional service, such as securing reservations or arranging special activities, a tip of AUD 5-20 is a thoughtful way to show appreciation.

See my review of Jackalope Hotel on the Mornington Peninsula in Victoria.

Transport

Taxis and Rideshares

Taxis: Tipping taxi drivers is not expected. If you receive excellent service, you can round up the fare to the nearest dollar or $5 depending on the length of the trip.
Rideshares (Uber, Didi): Similar to taxis, tipping is not required. The app may prompt you to leave a tip, but it’s up to you.

Airport Shuttles and Drivers

Shuttle Bus Drivers: Tipping is not common for shuttle bus drivers. If they assist with heavy luggage, a small tip of AUD 2-5 is a nice gesture.
Private Drivers: If you hire a private driver for a tour or a long-distance trip, tipping is more common. A tip of 10% of the fare is a reasonable amount for good service.

Read my guide to Australia's Must Visit Wine Regions

Other Services

Tour Guides

If you join a guided tour, tipping the guide is appreciated but not expected. A tip of AUD 5-10 per person for a half-day tour or AUD 10-20 per person for a full-day tour is a nice way to thank them for their effort and knowledge.

Summary

Tipping in Australia is not as customary as it is in other countries, but it is a way to show appreciation for exceptional service. Here’s a quick summary of when and how much to tip:

Restaurants (Casual): Not expected, but 5-10% for good service.
Restaurants (Fine Dining): Not expected, 10% for excellent service.
Cafés and Bars: Not expected, but rounding up the bill is appreciated.
Hotel Porters / Bellhops: Not expected, but AUD 2-5 per bag is reasonable.
Hotel Housekeeping: Not expected, but AUD 2-5 per day is reasonable.
Concierge: Not expected, but AUD 5-20 for special assistance.
Taxi and Rideshare Drivers: Not expected, but rounding up the fare is nice.
Tour Guides: Not expected, but AUD 5-10 for half-day, AUD 10-20 for full-day tours.

Remember, tipping in Australia is a personal choice and should be based on the level of service you receive. It’s always appreciated but never obligatory. By following these guidelines, you can show your gratitude in a way that aligns with local customs.

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About: Lisa Bundesen

Hi, I’m Lisa, a 50+ retired chartered accountant. My husband, Darren, and I explore the world every opportunity we get. Staying fit is key to our adventures, from hiking the Inca Trail to scuba diving. We call Australia home but travel overseas often, always eager to discover new cultures, bustling cities, cuisines, nature and wildlife.

We would love you to join us on our journeys and hope that our adventures give you encouragement to explore this amazing world.

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