Tips Tax Calculator Australia
Estimate how tips affect your taxable income. Includes record-keeping checklist. Estimate only—not tax advice.
Important Disclaimer
This calculator provides estimates only and is not tax advice. Tax rates vary based on total income, deductions, and individual circumstances. Always consult with a qualified accountant or refer to ATO guidance for accurate tax information.
Tax Calculator
Your regular wage income (optional, for reference only)
Total tips received (cash + digital combined) for this period
Your marginal tax rate depends on total income. These are 2024-25 rates. If unsure, consult an accountant.
Record-Keeping Checklist
Cash Tips
- •Note the date and amount received
- •Keep a simple log (notebook, spreadsheet, or app)
- •Total cash tips weekly or monthly for easy tax reporting
Digital Tips
- •Export tip reports from your digital tipping platform
- •Keep payout summaries and transaction records
- •Digital platforms provide automatic records—much easier than cash
For Venues (Tip Pooling)
- •Keep distribution records showing who received what
- •Document the pooling method used (equal, hours, role-weighted)
- •Provide staff with tip distribution summaries for their tax records
Why Digital Records Help
Digital tipping platforms automatically track every tip, creating accurate records for tax purposes. Unlike cash tips (which require manual logging), digital tips provide:
- •Automatic transaction records with dates and amounts
- •Exportable reports for tax time
- •Payout summaries showing total tips received
- •No risk of forgetting or losing cash tip records
This makes tax reporting much simpler and reduces the risk of under-reporting or missing tips.
Tip: Create a tip pool policy for your venue. Use our tip split calculator for distribution calculations. Learn more about cashless tipping in Australia.
How It Works
How This Tax Calculator Works
Simple estimate of tax on tips. Not a substitute for professional tax advice.
1
Enter Your Details
Select your pay period, enter your tips income (cash + digital combined), and optionally enter your wage income. Choose your marginal tax rate or select "Not sure" for guidance.
2
View Estimate
See estimated tax on tips and after-tax amount. This is a simple calculation (tips × rate) and does not account for deductions, offsets, or your full tax situation.
3
Keep Records
Use the record-keeping checklist to track cash and digital tips. Digital tipping platforms provide automatic records, making tax reporting much easier than cash tips.
Related Resources
📚Guides & Resources
🧮Helpful Tools
👥Digital Tipping Solutions
Cafe Tipping
Digital tipping for cafes and coffee shops
Restaurant Tipping
Cashless tipping solutions for restaurants
Bar Tipping
QR code tipping for bars and pubs
Team Tip Page
Create a shared tip page for your venue team
Hospitality Worker Tipping
Digital tipping for hospitality workers
Salon Tipping
Cashless tipping for salons and spas
Event Staff Tipping
Digital tips for event teams
FAQ
Frequently Asked Questions
Everything you need to know about PocketTip.
Tips Tax
Common questions about tips and tax in Australia (not tax advice)
Are tips taxable in Australia?
Yes, tips are taxable income in Australia. Employees must declare all tips (cash and digital) on their tax return. Tips are subject to income tax but not GST. This calculator provides estimates only and is not tax advice. Always consult with a qualified accountant or refer to ATO guidance for accurate tax information.
How do I declare cash tips on my tax return?
Cash tips must be declared as 'other income' on your tax return. Keep a log of dates and amounts received. Total your cash tips for the financial year. This calculator provides estimates only and is not tax advice. Consult with an accountant or refer to ATO guidance for accurate reporting.
Do digital tips need to be declared?
Yes, digital tips are taxable income and must be declared on your tax return. Digital tipping platforms provide automatic records and reports, making tax reporting easier than cash tips. Export tip reports and payout summaries for tax time. This calculator provides estimates only and is not tax advice.
What records should I keep for tips?
Keep records of all tips received: dates, amounts, and source (cash or digital). For cash tips, maintain a log. For digital tips, export reports from your platform. Keep payout summaries showing total tips. For tip pooling, keep distribution records. This calculator provides estimates only and is not tax advice.
Is GST charged on tips?
No, GST is not charged on tips in Australia. Tips are voluntary payments from customers to staff and are not subject to GST. However, tips are taxable income for employees and must be declared on tax returns. This calculator provides estimates only and is not tax advice.
About Cashless Tipping
Understanding digital tipping in Australia
What is cashless tipping in Australia?
Cashless tipping is a digital way for customers to tip service workers using card, Apple Pay, or Google Pay instead of cash. QR code tipping platforms like PocketTip make it easy for Australian workers to accept tips in our tap-and-go economy.
How does QR code tipping work in Australia?
QR code tipping works by linking a QR code to a digital tip page. When a customer scans the code with their phone camera, they open your tip page and can tip using card or mobile wallets without cash. It's the modern digital tip jar for Australia's cashless economy.
Is this the same as a digital tip jar?
Yes. PocketTip works like a digital tip jar customers scan your QR code and tip cashlessly using card, Apple Pay, or Google Pay. It's designed for Australian service workers who want to accept cashless tips.
Why do Australian workers need digital tipping?
Most Australians don't carry cash anymore. Cashless tipping with QR codes lets customers tip service workers using the same tap-and-go payment methods they already use for everything else. It removes the 'I don't have cash' problem.
What types of workers use cashless tipping?
Cashless tipping is used across Australian hospitality workers, café baristas, restaurant servers, bartenders, rideshare drivers, delivery workers, salon staff, performers, event staff, and more anywhere customers want to say thanks in a cashless way.
Getting Started
Everything you need to begin accepting tips
How do I create a tip page?
Creating a tip page on PocketTip is free and takes about 60 seconds. Sign up, choose your event type, add your details, and you'll get a unique QR code and shareable link. No technical skills needed.
Do I need a Stripe account?
No separate Stripe account needed. We use Stripe Connect to handle payments securely. You'll complete a simple onboarding process to receive payouts directly to your Australian bank account.
How long does setup take?
Setup takes about 60 seconds to create your tip page. Stripe Connect onboarding (required for payouts) takes 5-10 minutes and can be done anytime before your first tip. You can start sharing your QR code immediately.
Is there a mobile app?
No app needed. Your tip page works perfectly in any web browser on any device. Customers scan your QR code and tip directly through their phone's browser using card, Apple Pay, or Google Pay.
Can I customise my tip page?
Yes. You can add your name, photo, event details, welcome message, and choose colours to match your style. Make it personal so customers know they're tipping the right person.
For Customers
How tipping works for your customers
How do I tip someone?
Scan the QR code with your phone camera or tap the link. Choose a tip amount (or enter custom), add an optional message, and pay with card, Apple Pay, or Google Pay. The whole process takes about 30 seconds.
Are there fees for tipping?
Small processing fees apply (similar to buying coffee with card). Fees are shown upfront before you confirm payment. The person receiving the tip gets 100% of the tip amount you enter.
Can I tip anonymously?
Yes. You can choose to leave your name or tip anonymously. Either way, the person receiving the tip gets a notification and can see your message (if you leave one).
What payment methods can I use?
You can tip using any major credit or debit card, Apple Pay, Google Pay, or other mobile wallets. All payments are processed securely through Stripe.
Is tipping safe and secure?
Yes. All payments are processed securely through Stripe, the same payment system used by millions of businesses worldwide. We never store your full card details.
Pricing & Fees
Transparent pricing with no hidden costs
How much does it cost to use PocketTip?
Creating and using your tip page on PocketTip is completely free. There are no monthly fees, no setup costs, and no subscriptions. You only pay small processing fees when someone tips you (similar to card transaction fees).
What fees do I pay?
You don't pay any fees. The person leaving the tip pays small processing fees (shown upfront). You receive 100% of the tip amount they enter. No service fees, no monthly costs, no hidden charges.
How much are the processing fees?
Processing fees vary by country and payment method, typically around 2-3% plus a small fixed fee (similar to standard card transaction fees). Fees are always shown to the tipper before they confirm payment.
Are there any hidden costs?
No hidden costs. Creating your tip page is free. You receive 100% of tips. The only fees are small processing fees paid by the person leaving the tip (shown upfront). No monthly fees, no setup costs, no surprises.
Do I need to pay for a subscription?
No subscriptions required. ${process.env.NEXT_PUBLIC_PRODUCT_NAME} is free to use forever. Create unlimited tip pages, generate QR codes, and accept tips with no monthly or annual fees.
Payouts & Money
How you receive your tips
How do I get paid?
Tips are automatically transferred to your Australian bank account via weekly payouts. You'll complete a simple Stripe Connect onboarding to link your bank account. Payouts happen automatically every week.
How often do I get paid?
Payouts happen weekly. Tips received during the week are automatically transferred to your bank account. You'll receive an email notification when each payout is processed.
Is there a minimum payout amount?
No minimum payout amount. All tips are automatically included in your weekly payout, regardless of the amount. Even small tips are transferred to your bank account.
What bank accounts are supported?
We support all major Australian banks. You can link any Australian bank account during Stripe Connect onboarding. Payouts are processed via direct bank transfer.
How long until I receive my first payout?
Your first payout typically arrives 7-10 days after your first tip (to allow for processing and bank transfers). Subsequent payouts happen weekly. You'll receive email notifications for each payout.
Security & Trust
Safe and secure platform
Is PocketTip safe to use?
Yes. We use Stripe, one of the world's most trusted payment processors, to handle all payments securely. Your bank details are never stored on our servers. All transactions are encrypted and secure.
Who can see my tip page?
Only people with your QR code or link can access your tip page. You can make your page public (anyone can find it) or keep it private (only people with the link can access it).
What information do you collect?
We collect basic information needed to create your tip page (name, email) and process payouts (bank details via Stripe). We never share your information with third parties except as needed to process payments.
Can I delete my tip page?
Yes. You can delete your tip page or account at any time from your dashboard. Deleted pages stop accepting tips immediately, and any pending payouts will still be processed.
What if I have a problem with a payment?
Contact our support team if you have any issues with payments or payouts. We use Stripe's secure payment system, which includes fraud protection and dispute resolution.
Using Your QR Code
Display and share your tip page
How do I print my QR code?
Download your QR code as an image from your dashboard, then print it like any photo. You can print it on paper, stickers, or professional signage. The QR code never expires.
Where should I display my QR code?
Display your QR code where customers can easily see and scan it: on your counter, table, receipt, or tip jar. Make it visible and accessible. Many venues print it on a small sign or sticker.
Can I share my tip page link online?
Yes. You can share your tip page link on social media, in emails, or anywhere online. Customers can tip directly from the link without needing to scan a QR code.
Does my QR code expire?
No. Your QR code never expires. Once created, it works forever. You can use the same QR code for years, print it on multiple signs, or share it anywhere.
Can I have multiple tip pages?
Yes. You can create unlimited tip pages for different events, venues, or purposes. Each page has its own QR code and link. Perfect for different jobs or events.
