A couple things to note with tipping in America:
1. Hospitality workers get paid below minimum wage.
In 1995 or so, I waited tables. At that time, minimum wage was about $5.20. My colleagues and I got $2.30 per hour. This is legal and just how it is. Regardless, we still netted $100 on a good night, so naturally, we didn't mind.
2. Hospitality workers are taxed based on the expectation of a gratuity.
That's right. Whether you tip them the standard 15% or not, their income is taxed as if you did.
Since none of these points are true in Australia, I see no need to tip here. I did a bit when I first moved here over a decade ago, but I don't any more, unless they really go out of their way to make our exchange pleasurable, which in all my hindsight Australian memories, can be counted on the fingers of one hand.
As to the system's effectiveness, from the opinion of a dual citizen, Australian service does not compare to that in America. I'm sure that's subjective, but I can't recall anyone with suitable experience disagreeing with me on that point. I remember being in New Zealand about 5 years ago and being told that they were considering implementing a tipping system there due to how badly perceived the service was, at the very least from a tourist perspective. Did that ever happen?
Lastly, a major pet peeve of mine, regardless of location, are businesses without table service that have the nerve to put out a tip jar.
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Originally Posted by Bartrim
). Japan on the other hand has the best customer service I've ever encountered -- but the Japanese don't tip and they don't accept tips either. They just take pride in their work and it's an honour to serve. One time I made a purchase at a bookstore in Japan, and the change was like 1 or 2 Yen... so I told the clerk to keep the change. He kept trying to give my change back to me but I insisted that he keep it. He asked me why he should keep it and I told him that I didn't want it. He then said that the money didn't belong to him and thus he had no right to keep it. I then said that I was giving this money to him as a gift, and thus it was his to keep - and then walked out of the store before he could continue the argument. When I was about half way down the road from the store I turned around to see the clerk running after me so he could return my change. He repeatedly bowed to me and apologised profusely for taking my money before returning to his store.
