Dec 21 25

Automatic tipping becomes prominent due to rising cost of doing business in Australia

abc.net.au/news/2025-12-21/automatic-tipping-on-the-rise-amid-cost-of-business-crisis/106167380

Rising Automatic Tipping Amid Business Pressures

In 2024-25, automatic tipping transactions in Australia increased by 13% as businesses respond to escalating operational costs.

Key FactsDec 21, 2025 · Reading time: ~45 sec.
Summary created with AI assistance · Source: abc.net.au

Automatic tipping, adding a preset service charge to bills, is increasingly used in Australia to offset rising business expenses.

The practice is legal if customers are informed in advance and can opt out, but some venues have abandoned it after backlash.

Restaurants catering to international tourists adopt automatic tipping more often since visitors expect it as standard.

Experts highlight customer concerns over tip distribution and encourage diners to refuse unwanted charges.

I think one of the big questions with automatic tipping and tipping at an EFTPOS machine is how much of that tip is going to the person who served you, or the person who cooked your food, or any of the staff in the restaurant, and how much goes to the restaurant itself.
— Rob Nichols, Professor of Governance and Regulation at the University of New South Wales, discusses the implications of automatic tipping.

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Story Details

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Total Articles	17

Main Topics

Gratuity

#gratuity

practive customarily tendered to service sector workers

Restaurant

#restaurant

single establishment which prepares and serves food, located in building

Euro

#euro

currency of most countries in the European Union

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