A Guide to Tipping in Australia, New Zealand, and the South Pacific

Tipping can be a complex issue no matter where you travel: how much should you give, and in what manner? Sometimes it simply involves rounding up a fare, while in other instances, a generous tip may be warranted to express gratitude for outstanding service. The context matters greatly. 

In Australia, New Zealand, and the South Pacific, the tipping landscape is particularly perplexing since tipping for many services has only recently gained traction. Even now, it’s not always customary in numerous scenarios. Here’s how to navigate the diverse tipping customs throughout Oceania.

Should I tip at restaurants, pubs, and bars?

Traditionally, leaving tips in Australia and New Zealand hasn't been the norm, as hospitality staff are generally expected to earn a fair wage. However, during the Covid-19 pandemic, this tipping culture started to shift, partly due to rising living costs.

Since around 2021, tipping has gained traction, especially in cities like Melbourne. Yet, it hasn’t been widely embraced across the nation, and can be somewhat controversial. Many Australians and Kiwis feel that it’s the government's role to ensure minimum wages align with inflation, and that employers should pay fair wages. Tipping can be viewed as undermining workers' rights and is seen by some as 'un-Australia' or 'un-Kiwi.' This perspective might explain why some servers may refuse tips.

For visitors, navigating the tipping landscape in Australia and NZ can be challenging. A general guideline is: if you're in a rural area or at a pub or cafe where you order at the counter, tipping isn’t required. However, if you're dining in a full-service restaurant in a major city, a tip of 10% to 15% is appreciated if you feel the service warrants it.

Regardless of where you dine, keep in mind that menu prices include both tax and tip, with service charges of up to 15% often added automatically to your bill on weekends and holidays. This surcharge is linked to the higher wages paid to staff during hours worked outside standard working times (often referred to as penalty rates).

In the South Pacific, tipping at restaurants and bars is even less of a consideration, as it's not a part of Indigenous traditions. However, if you find yourself at an upscale restaurant enjoying exceptional food and service, feel free to add a 10% tip to your bill, even though it’s not expected.

Should I tip hotel staff?

Tipping hotel housekeeping or porters is not a common practice in Australia or New Zealand. However, if the service exceeds your expectations, you might consider leaving around $5 (in either Australian or NZ dollars), plus $5 a day for housekeeping services.

In the South Pacific Islands, visitors are welcomed warmly – upon checking into your hotel, you're treated as a valued guest, and upon a return visit, you’re considered part of the family.

It's important to note that tipping is not generally expected in these regions. If you do wish to show appreciation to specific staff members, it's best to do so in person, as tips left without interaction are typically declined. This is especially true for housekeeping staff.

Should I tip my tour guide?

Tipping local tour guides is entirely at your discretion. However, it's more customary to tip those working for international tour companies, as they interact with travelers who are more inclined to give gratuities.

In Australia and New Zealand, it's appropriate to tip tour guides and private drivers between $20 and $50 (in local currency) each day. For bus tour operators, a tip of about $5 to $10 for a day's work is suitable. It's worth noting that many bus drivers also serve as guides, which may justify a larger tip.

If you've had an exceptional experience with a tour guide or private driver in the South Pacific islands, tipping is welcomed but not obligatory. The amount is entirely your choice, but always use local currency, as US dollars can be difficult to exchange and may affect the local economy.

What is the appropriate tip for my taxi driver?

Taxi drivers in Australia, New Zealand, and the South Pacific islands do not expect a tip at the end of your ride, but it's common to round up the fare to the nearest $1 to $5 as a gesture of appreciation.

When using rideshare apps or ordering food through app-based delivery services, it is increasingly common to provide a reasonable tip, acknowledging that gig economy workers often earn below minimum wage.