Tipping, Splitting Bills & Money Etiquette in Australia

Tipping Culture — It's Not Expected

If you're coming from the US, this will be the best news of your move: tipping is not expected or required in Australia. Here's why:

Australian service workers are paid a living wage. The national minimum wage is $24.10/hour in 2025-26, and many hospitality workers earn $28-$35/hour with weekend penalty rates. They also receive 12% superannuation, 4 weeks annual leave, and 10 days sick leave. They don't rely on tips to survive.

That said, here's the nuanced guide to tipping in different situations:

When Tipping Can Be Awkward

Some EFTPOS terminals now prompt you to add a tip when you tap your card. This American-style practice has become increasingly common in cafes and restaurants and is somewhat controversial in Australia. Many Australians simply press "No Tip" and move on — there's no judgment. Don't feel pressured by the prompt.

Splitting Bills — The Norm

In many cultures, fighting over who pays the bill is a ritual. In Australia, it's simple: everyone pays their share. "Going Dutch" is the default expectation, and there's zero awkwardness about it.

How it works in practice:

• At the restaurant: Simply ask the waiter to "split the bill" — most places will split it across 2-6+ cards without blinking
• Equal split: Groups often just divide the total equally, even if some people ordered more. This is quicker and socially simpler
• Itemised split: For large groups or big price differences, people may pay for their own items
• One person pays, others transfer: Very common — one person puts their card down and others send bank transfers or use Beem It

Bank Transfers and Apps

Australia's banking system makes splitting easy:

• PayID: Instant bank transfers using a phone number or email — built into all major bank apps. Send money in seconds.
• Beem It: A dedicated bill-splitting app (owned by Eftpos) — create a group, enter amounts, everyone pays
• Bank transfers (BSB/Account): The traditional method — slower but universal

Shouting Rounds — The Unwritten Rule

This is perhaps the most important money custom in Australian social life. "Shouting" means buying something for someone else, and "shouting a round" means buying a round of drinks for your group at the pub.

How it works:

1. You go to the pub with friends
2. One person says "I'll get the first round" and buys drinks for everyone
3. When those drinks are finished, someone else says "My round" and buys the next round
4. This continues until everyone has bought a round (or you've all had enough)

Shouting Beyond Drinks

"Shouting" extends beyond the pub. Common situations:

• "I'll shout you lunch" — I'll pay for your lunch (as a nice gesture)
• "It's my shout" — I'm paying this time (usually because you paid last time)
• "Don't worry, it's on me" — casual way of insisting on paying

Tax-Included Pricing — What You See Is What You Pay

This is one of the most practical differences from countries like the US. In Australia, all displayed prices include GST (Goods and Services Tax at 10%). There's no tax added at the register, no surprises at checkout.

• Menu price: $22 for a burger = you pay $22
• Shop price: $49.99 for a shirt = you pay $49.99
• Online price: Same — includes GST unless the seller is overseas and below the $1,000 threshold

This applies to almost everything: restaurants, supermarkets, clothing stores, electronics, services. The only common exception is when businesses quote prices "ex GST" (excluding GST) in business-to-business transactions.

The Cashless Society — Tap and Go Everything

Australia is one of the most cashless societies in the world. Tap-and-go (contactless) payment is accepted almost everywhere, and many Australians go weeks without touching cash.

What you need to know:

• Contactless limit: Most banks allow tap-and-go payments up to $200 without a PIN. Over $200, you'll need to insert the card and enter your PIN
• Phone payments: Apple Pay, Google Pay, and Samsung Pay are widely accepted — your phone is your wallet
• Watch payments: Apple Watch and smart watches work at most terminals
• Some businesses are cashless: Some cafes, bars, and food trucks only accept card/phone payments
• Cash still works: Supermarkets, petrol stations, most shops still accept cash. Legally, businesses don't have to accept cash for goods and services

BYO Restaurants — Bring Your Own Wine

BYO (Bring Your Own) restaurants are a uniquely Australian tradition. These restaurants let you bring your own wine (and sometimes beer) instead of buying from their drinks menu.

• Corkage fee: BYO restaurants charge a small "corkage" fee — typically $3-$10 per bottle — for opening and serving your wine
• Why it's great: You can buy a $15 bottle from a bottle shop and pay $5 corkage, instead of paying $50 for the same wine on the restaurant's list
• Etiquette: Don't bring cheap wine to a fine dining restaurant. Match the quality to the venue. And don't bring the same wine that's on their wine list — that's considered poor form
• Check first: Not all restaurants are BYO. Some are "BYO wine only" (no beer or spirits). Check when booking

Talking About Salary — More Open Than You'd Expect

In many cultures, discussing how much you earn is taboo. In Australia, it's more open than you might expect, especially in certain contexts:

• Job hunting: Salary expectations are discussed openly in interviews. Many job ads include the salary range. Glassdoor and Seek both show salary information
• Among colleagues: While not everyone shares their exact salary, it's not uncommon among trusted colleagues. Australia's award system means many wages are publicly available anyway
• Among friends: Discussing house prices, rent, and general financial situations is common. "How much did you pay for that?" is a normal question
• What's NOT done: Bragging about wealth, flaunting expensive purchases, or looking down on people who earn less. Australians value egalitarianism — the "tall poppy syndrome" (cutting down people who show off) is real

Lending Money Culture

Australians are generally relaxed about small amounts of money between friends:

• Small amounts ($5-$20): Lending without expectation of immediate return is common. "Don't worry about it" or "you can get me next time" are standard responses
• Medium amounts ($50-$200): People will expect this back, usually settled via bank transfer within a few days
• Large amounts ($500+): Less common between friends without a clear agreement. Put it in writing
• Workplace collections: It's common for workplaces to collect money for birthdays, farewells, or personal events. Typical contribution is $5-$20. Participation is expected but not mandatory

Bargaining and Haggling

Bargaining is not part of Australian retail culture. In shops, supermarkets, restaurants, and most businesses, the price is the price. However, there are exceptions:

• Car dealerships: Negotiation is expected and standard
• Real estate: Property prices are negotiable (auctions are different)
• Markets: Some weekend and flea markets allow mild bargaining, especially near closing time
• Large purchases: Electronics stores (Harvey Norman, JB Hi-Fi) will sometimes negotiate or price-match competitors
• Insurance and utilities: You can often negotiate by calling and asking for a better deal, especially at renewal time
• Trade services: Getting multiple quotes from plumbers, electricians, etc. is standard

Frequently Asked Questions

Do you tip in Australia?

Tipping is not expected or required. Australian service workers earn a living wage ($24.10/hour minimum) with super, annual leave, and sick leave. If you want to tip for exceptional service, 10% is generous. You will never be judged for not tipping. Don't feel pressured by tip prompts on EFTPOS machines.

How do Australians split bills at restaurants?

Splitting bills is very common and completely normal. Most restaurants will split across multiple cards. Many groups use PayID (instant bank transfer via phone number) or one person pays and others transfer their share. "Going Dutch" is the default — there's no awkwardness about it.

What does "shouting" mean in Australian culture?

"Shouting" means buying something for someone, usually a drink. "Shouting a round" means buying drinks for everyone in your group. If someone shouts you a drink, you're expected to reciprocate by buying the next round. Not returning a shout is considered very poor form in Australian social culture.

Is tax included in Australian prices?

Yes. All displayed prices include GST (10% Goods and Services Tax). The price you see is the price you pay — no surprises at the checkout. This applies to restaurants, shops, and online stores. It's different from the US where tax is added at the register.

Can I still use cash in Australia?

Technically yes, but Australia is very cashless. Tap-and-go contactless payment is accepted almost everywhere. Some businesses only accept card/phone payments. Set up Apple Pay or Google Pay with your bank card — you can get by almost entirely without cash in most cities.

What is a BYO restaurant?

BYO (Bring Your Own) restaurants let you bring your own wine instead of buying from their drinks menu. They charge a small "corkage" fee ($3-$10 per bottle). It's a great way to enjoy a restaurant meal without paying marked-up wine prices. Not all restaurants are BYO — check when booking.

Disclaimer: This article is for general cultural information only. Social customs vary between individuals and groups. The information is based on general Australian cultural norms and may not apply in every situation. SettleAU is not affiliated with any business or app mentioned in this article.