Australian Restaurant and Café Association CEO Wes Lambert says Labor is “not listening” to small businesses around Australia. In Question Time yesterday, Labor went on the attack against the Coalition’s plan to provide small businesses with tax breaks for work-related entertainment and meals.

Tips paid to restaurant staff should be tax-free and treated the same way as lotto winnings, the Australian Restaurant and Cafe Association says, as diners pay growing sums to reward exceptional service.

Australians tipped more and at a greater frequency in 2024 as metropolitan customers led a wave of increased generosity that defied overall spending restraint driven by cost-of-living pressures. The average tip in Australia rose to $25.20 in 2024, according to data compiled from more than 75,000 Australian businesses using electronic payment system Zeller. This was a 25 per cent increase from 2023 ($20.20), with the state capitals leading the surge as regional customers pulled back on giving gratuities in 2024.