Despite rising prices, Australians are tipping more

Australians tipped more and at a greater frequency in 2024 as metropolitan customers led a wave of increased generosity that defied overall spending restraint driven by cost-of-living pressures.

The average tip in Australia rose to $25.20 in 2024, according to data compiled from more than 75,000 Australian businesses using electronic payment system Zeller. This was a 25 per cent increase from 2023 ($20.20), with the state capitals leading the surge as regional customers pulled back on giving gratuities in 2024.

Restaurants and bars in Australia’s state capitals were the primary beneficiary of increased tipping. Credit: Getty Images/iStockphoto

Melbourne and Brisbane customers were the most generous in 2024, tipping an average of $39.50 and $32.20 respectively. All capital cities bar Brisbane tipped more last year than in 2023, though Sydney ($16.90) and Perth ($12.52) forked out the least in 2024.

Victorians tipped more than double the amount of their NSW counterparts, with South Australians also tipping more than those in Australia’s most populous state.

Tipping in Adelaide almost tripled in 2024, when customers offered just short of $28 with each tip. For regional businesses, tipping fell by 10 per cent in the calendar year as customers tipped $2 less ($17.20) on average in 2024.

Overall, fewer than 1 per cent of transactions included a tip in 2024 (0.68 per cent), though this was a 13 per cent increase on what was recorded in the previous year (0.6 per cent).

Josh McNicol, director of growth at Zeller, said that the expansion of “simpler and more discreet” electronic tipping systems and an increased recognition of “exceptional customer service” was behind the influx of gratuity giving in 2024.

“Despite economic pressures, the rise in tipping highlights a cultural appreciation for great experiences,” McNicol said.

“Rather than seeing tipping as an ‘Americanisation’ of dining culture, we see it as a reflection of Australians’ growing generosity and desire to reward outstanding service.”

Restaurants and bars in Australia’s state capitals were the primary beneficiary of increased tipping, McNicol declaring that gratuity-giving in the hospitality sector was increasingly common.

Among merchants benefiting from increased customer generosity was Anna-Sophie Pinter, restaurant manager at Nonda, a Japanese restaurant in Brisbane.

Gratuities for Nonda grew by 14 per cent in the second half of 2024, a trend that Pinter “definitely” noticed but was nonetheless astounded by.

“I honestly could not have been more surprised, given the fact that rent, food and all other prices just skyrocketed,” Pinter said.

“I think one of the reasons, especially after COVID calmed down, is that people appreciate the personal service, going out and gathering even more than before.

“A tip is definitely a big reward for all the staff who work customer-facing roles, since you always have to show your top performance and be warm-hearted and friendly, even though they might be having the worst day ever. So I think a tip also rewards them for showing their best, even on the worst days.”

Increased tipping comes as Australians faced persistent inflationary pressures in 2024, when prices rose above 3 per cent for most of the calendar year. High inflation kept the cash rate at 4.35 per cent, the highest level since 2011, during 2024.

Taxi drivers were among the winners of increased consumer generosity as average tip values more than doubled in 2024.

Australians were most likely to tip those working table service ($25.80) or at a bar or club ($11.20). Baristas earned among the least in gratuities ($2.94) while beauty services were tipped just under $7 in 2024 – a 12 per cent decline from 2023.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.