Tipping Culture in Australia Booms Despite Cost-of-Living Crisis: Which Cities and Industries Lead the Way?

Which Cities and Industries Lead the Way

Despite rising living costs, Australians are tipping more generously than ever. The latest 2024 Australian Tipping Report by financial services company Zeller reveals a 25% surge in average tip amounts, proving that great service is still highly valued.

While tipping has long been considered a foreign concept in Australian culture, it’s now gaining momentum—especially in major cities and specific industries. But which locations and sectors are seeing the biggest increase? And what does this shift mean for businesses and hospitality workers?


How Much Are Australians Tipping in 2024?

💰 The average Australian tip rose to $25.20 in 2024, up 25% from 2023.
📈 Tipping transactions increased by 13% over the past year.
🏙️ City dwellers are tipping more frequently and generously, while regional areas saw a 10% decline in tipping amounts.

🗣️ “Despite economic pressures, the rise in tipping highlights a cultural appreciation for great experiences and a willingness to support the individuals and businesses who make them possible.”
Josh McNicol, Director of Growth, Zeller

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Which Australian Cities Tip the Most?

Tipping isn’t uniform across the country—some cities are far more generous than others.

🏆 Australia’s most generous tippers:

CityAverage Tip (2024)
Melbourne$39.50
Brisbane$32.20

🔻 However, Brisbane was the only capital city where tipping declined, dropping from $42 in 2023 to $32.20 in 2024.

🚫 Perth tipped the least, with an average tip of just $12.52.

🌆 City vs. Country Divide:
📊 Urban customers increased tipping values by 26%, while regional areas saw a 10% drop in tipping amounts.


Where Are Australians Tipping the Most? Top Industries for Tips

The type of service also affects how much Australians tip. According to Zeller’s report, restaurants received the highest average tips, while coffee shops and transport services saw more modest amounts.

🥂 Tipping Breakdown by Industry:

Service TypeAverage Tip (2024)
🍽️ Table service restaurants$25.80
🍸 Bars & clubs$11.20
🚖 Taxis & transport$5.94
Coffee shops$2.94

💡 Why the increase?
Electronic tipping systems make tipping easier and more discreet.
Growing recognition of exceptional service in hospitality.
Tipping as a tool for businesses—boosting staff morale, rewarding great service, and improving employee retention.

🗣️ “Tipping isn’t just about generosity; it’s also a powerful tool for businesses. It helps reward great service, boosts staff morale, and can even play a role in retention.”Josh McNicol, Zeller


Is Australia Becoming More Like the US in Tipping Culture?

For years, Australians have resisted American-style tipping. But as digital payment systems make tipping seamless, attitudes are shifting.

More people are tipping—and tipping higher amounts.
Tipping culture is evolving from an occasional act of generosity to a more standard practice in hospitality.
Consumers are rewarding good service more frequently—not just in fine dining but also in bars, cafés, and even transport.

While mandatory tipping is still far from becoming the norm in Australia, cultural attitudes are changing. With the cost-of-living crisis putting pressure on businesses and staff, tipping is now being seen as a way to support the industry and reward quality service.


The Future of Tipping in Australia: A Growing Trend?

📢 What this means for businesses and customers:
For businesses: Tipping can improve staff retention, motivation, and service quality.
For workers: More frequent and higher tips mean better financial rewards for great service.
For customers: Tipping is increasingly viewed as a normal way to reward outstanding hospitality.

💡 Final Thought:
Australia’s tipping culture may never fully mirror the US, but it’s clear that generosity towards service workers is on the rise. Whether in fine dining, cafés, or bars, tipping is becoming an expected part of the experience—even in a tough economic climate.

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