Dining out service charge.
Posted by: bev1410
13th Jan 2026 04:14pm
I went out for a meal with some family members, my treat. Middle of the road food and service. When the bill arrived, I saw there was a 10% service charge, which I wasn't aware off being automatically added to my bill. The service actually hadn't been great. I questioned the charge, they said it's all part of their service. I argued the point, service/tips are down to the customers discretion. They withdrew their service charge of my bill. Do you think I was within my rights to not paying their service charge?
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Comments 4
abarnes
Some restaurants and cafes levy a service charge to cover penalty rates on Sundays and public holidays. But this should be made clear before you are seated via their website and signage at the front desk/entry. In my mind, I would hope that the signage at the entry is not written in a font that resembles a vision test, so that you are well aware before you enter.
If the service charge was an automatic tip, then you were well within your right to refuse its payment. Tipping in Australia remains at the discretion of the patron, based on the whole dining experience.
kidwithsmurf
I believe you're well with in your rights and I would have complained too. This is because I don't believe there should ever be hidden fees or charges on anything anywhere be it a restaurant, fast food, retail shops etc. Everything should be upfront and laid out in front of you before ordering.
This said, the only time I've seen a service charge at a restaurant in Australia is if it's a 5 star restaurant or one that you have to ring and pray you get a table. Sometimes these have table fees which is a fee to reserve your table or get a table. But even then, this fee is told to you upfront and you normally get waiter service at these venues.
Therefore, I'd say whatever this restaurant is, is just relying on customers to not question or notice the "service charge" and just pay it to make a quick extra dollar. Which is really rude and scammy. In my opinion, if they are not making ends meet, they are better off putting the food/drink price up, rather than hiding the fee and trying to scam people into paying it/having to pay it.
Lastly, you may even be able to report them to the ACCC (Australian Competition & Consumer Commission) or your states equivalent to Office of Fair Trading as this sounds like a breach of Australian Consumer Law. The ACCC basically says it can't mislead consumers about what they’ll be charged or why. Furthermore, Consumers should be made aware of any surcharges or fees that may apply before they decide to order or purchase goods or services. Businesses should display any surcharges or fees in a prominent way so that consumers can easily and clearly see whether there are any additional costs that may apply before making a decision.
Caperteewaratah
Surpise charges should not be added to bills so that you discover it (maybe if you read it) at the till, as this is rather sneaky and underhanded.
Tipping is not part of Australian life and is a way of American workers trying to get some decent pay for their work - Citizens of USA are not paid much comparedt to Australia. If you have been to USA the idea of having to "tip" to make up workers wages, is rather unpleasant.
When I got out, I like to know what is the actual cost of the meal or drink and have it clearly laid out on the menu. Not with some sentence in tiny writing which may say other charges.
But what is the charge for really?
Deceptive to say the least.
I can understand if the eatery has these charges laid out clearly for weekend penalty rates and it is stated, but not some surprise charge you discover when it comes to pay.
Good thinking and reasoning on asking what is it for at the till. Made them think.
chickenman
yes ! you were within your rights. the cost of any meal should include any other charges applicable.