Tips and tax: there are no hidden holiday costs in Australia
November 8th, 2007 by YvonneTo tip or not to tip - that’s a question we rarely know the answer to until after we’ve arrived at our holiday destination.
We have just returned from a trip to Canada and the USA - a great holiday that highlighted the big differences between North America and Australia when it comes to tipping.
As passengers on the Rocky Mountaineer, for example, we were advised that it would be acceptable (in other words, expected) to offer CAD$25 per day per hostess. And this is after we had paid top dollar for the tour! Our costs everywhere were higher than we had anticipated because of the “gratuities” added to meals and services.
Some argue that gratuities are necessary in countries where workers are not paid adequate wages. But does this really apply to North America? Or is it an excuse for employers to pay lower wages than they can afford?
Some restaurants and tour operators will make it clear that tips are an essential part of an employee’s take-home pay. So you’re effectively being told that you have to pay the employee part of their wage, as well as paying for the goods or services. Personally I’d rather have the extra built into the price so that I know what I’m buying up front.
Then there’s tax. To top off our North American trip, GST was added at the cash register AFTER we had selected a purchase, so you have to remember to mentally add the GST to avoid being unpleasantly surprised by this hidden extra!
When you come to Australia, when you view prices at restaurants, in stores and on Australian travel sites like this one, the price you will pay is the price advertised. GST, if applicable, is either included or stated clearly up front, and tipping is not expected. However if you feel that you have received excellent service and you wish to tip then that is your choice.
I’d love to hear your views and your experiences of tipping. Check our Travel Tips category regularly for more Australian travel tips, including advice for drivers exploring our magnificent Great Ocean Road.
You can get more information on tipping and other Australian travel matters from The Small Guide.
Tags: Gratuities, tipping
Posted in Events, Tours, Travel tips. Permalink for this post: permalink.
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November 8th, 2007 at 5:21 pm
I dislike the practice of tipping wherever it is. I suppose that is a cultural thing, since it just isn’t the norm in Australia. We had the same experience in the USA a few years ago, and of course through Europe on various trip.
I think the Australian system is far better and a lot fairer all round. Workers should be paid a fair wage and do a good job in return. They shouldn’t have to rely on topping up their wages with tips. Tourists should be able to rely on the advertised price as the real price. If there are extra taxes, at for example at airports, then those taxes should be advised in advance. And of course GST should be included the price advertised.
I’m sure other countries do some things better than us, but when it comes to tipping, give me the Australian system everyt ime.
November 16th, 2007 at 10:59 am
I’m also not very comfortable about tipping. Maybe it is my Australian background - or my shocking grasp of mathematics
I never feel certain if I am being insulting or overly generous!
I prefer tipping when I feel it is warranted. I once had to tip a tour operator in Europe who had been a nightmare. When she demanded a certain amount from all of the passengers because her company “barely paid her enough to live on” it created a very unpleasant atmosphere…
Like everything, we should reward good service and encourage poor service to pull up its socks!
December 1st, 2007 at 11:26 am
This post makes me want to stay and explore Australia even more (as opposed to jet setting off overseas)!
Being someone who is quite frugal with my money and has offended waiters in the past with my tiny tips, tipping quite simply overwhelms me. I rather not do it.