The tipping trend and tax

Tipping in Australia is on the rise, with restaurant tips increasing by nearly 50% in just two years —in spite of a cost-of-living crisis and a drop in international tourism. But where do these tips go, and should they be taxed? CEO of the Australian Restaurant and Café Association, Wes Lambert, unpacks the latest data and explores how businesses handle gratuities. He also questions whether the government should treat tips as tax-free windfalls. With wages rising and digital tipping options becoming more common, the conversation also explores how our tipping culture will continue to evolve.