Despite the cost-of-living crisis, Australians are tipping more generously, with the average tip rising to $25.20 in 2024—a notable 25 per cent increase from the previous year, according to Zeller’s Australian Tipping Report. Josh McNicol, Zeller’s director of growth, attributes this rise to a cultural appreciation for exceptional service and experiences.
Melbourne leads the way as the most generous city for tipping, with an impressive average of $39.50, while Brisbane’s tipping has dropped from $42 to $32.20. However, Perth sits on the lower end, averaging only $12.52. Urban areas have seen a 26 per cent increase in tip values year-on-year, contrasting with a decline in regional areas.
Tipping frequency has also seen a 13 per cent rise, with the average tip varying by the type of service: $25.80 for table service restaurants, $11.20 for bars, $5.94 for taxis, and $2.94 for coffee shops. The shift in tipping culture, aided by electronic systems, reflects a growing recognition of and appreciation for stellar customer service, particularly in the hospitality sector. Tipping serves not only as a form of appreciation but also as a vital motivator for staff morale and retention in the industry.