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"Discretionary" 10% Service Charge? Yeah, Nah.
By George

There's a Reddit thread blowing up on r/melbourne right now about a "discretionary" 10% service charge — automatically added to the bill, before you've even decided if the waiter earned it. Hundreds of upvotes. Half the city squinting at receipts. The other half wondering when we started pretending we live in New York.

It's not just one venue. Reine & La Rue and Florentino add 10% for groups of six-plus. Nel in Sydney tacks it on every Friday and Saturday. House Made Hospitality venues hit you with up to 7%, "removable upon request." And sure — technically you can ask for it to be removed. But nobody wants to be the person at the table who says "excuse me, can we not pay the staff tonight?"

Here's the thing. Australians don't tip because we have a minimum wage — a real one. We pay a premium for dining out expecting the menu price covers everything. When an extra 10% shows up automatically, it doesn't feel like generosity. It feels like the price was wrong.

And calling it "discretionary" while applying it automatically? That's not discretion. That's a surcharge with a guilt-escape clause. The default is you pay it. Most people just eat the cost rather than have that conversation at the end of a nice dinner.

With the RBA's card surcharge ban coming 1 October, venues are finding creative new revenue streams. The card fee disappears — suddenly there's a 10% "hospitality experience contribution" in its place.

So next time you're staring at a restaurant bill wondering where that extra $25 came from — it's not the card fee anymore. It's something "discretionary."

Happy dining! ✌️ G