Tipping in Sydney

Question

I would be travelling to Sydney and just wanted to know about the tipping etiquette in Sydney.

I have read somewhere that the Service tax is already included in the price and there is no need to tip. Also, in countries like US (NYC specifically), bartenders/waiters are paid minimum wage and therefore the culture of paying tips. Is it similar in Sydney?

Is it required to tip the taxi drivers?

Thanks.

Answer 1

As a rule, tipping is not necessary in Australia, wages are sufficient to make a living anyway and this shows in the eye-watering prices for any service. Most cafes and casual restaurants have tip jars, where you're welcome to reward good service with a coin or two (or, like us when eating out with our two-year-old, apologize for mess), but this is purely voluntary. Likewise, you probably would not tip your cabbie unless he eg. carries your bags for you or finds a magical way through a traffic jam when your wife is having a baby in the backseat (not that I would have stuck around waiting for change anyway...).

The only situation where tipping is kinda-sorta expected is in fancy restaurants with degustation menus, white tablecloths and sommeliers hovering by your elbow, in which case 10% is standard. The justification I've heard is that people in these places are more skilled than the grumpy uncle at the corner truck stop, yet get paid the same (union) wages, so the tips are their reward for going the extra mile.

Answer 2

Some Australians disapprove of tipping. They associate it with America (the most prominent English-speaking country that has tipping) and with people receiving poor wages (and other bad stuff about America, such as it being seen to lack universal health care).

The main time that people tip in Australia is when a large-ish group of people have dinner together in a non-fast-food restaurant. No-one pays less than their fair share, and people typically round up just to be on the safe side or because there aren't enough one or two dollar coins or five dollar notes, and the group doesn't expect to get change back from the restaurant. Also, while it isn't common to tip cabbies, you might round up to the nearest five dollars and let him keep the change.