I'm glad we don't have 'tipping' in Australia, though some eateries are trying their best to copy the practice.
The American wage-system or system of remuneration definitely allows tipping to occur (low service-wages from my interpretation)
If 'tipping' was widespread in Australia we'd have a GST (a tax) on top of the 'tipping-fee', and more likely a GST applied to the 'tip' (which in total, would make for an expensive meal, and night out)
If they are going to do that just build it into the cost of the food.
However is they seriously fuck up serving you not tipping is a good option.
The other day we went to a Denny's for my mom's birthday.(they offer a free meal for birthdays) They took forever to get us our drinks, my sisters food was late, and messed up splitting the bill 2 ways. They just fumbled for 5 minuets before somebody came and solved the problem immediately.
Almost never the case. Restaurants often pay over minimum and still allow tips. The only exceptions I know of are in areas of inflated income (i.e. airports, stadiums, etc) where employees are paid (often) significantly more. Those locations will divide 5% - 15% of cash profits out as "tips earned" but will not allow tipping to individual employees. Their prices are inflated to balance out this cut.
As a result, waiting for a company such as Denny's can be extremely lucrative work if you can keep a smile on your face and not screw up. Where I live that's an $11/hr wage, $3.75 over federal minimum, plus tips.
I remember going to a restaurant here in England with [my then] girlfriend and some of her friends. When it came to ordering dessert, there was several screwups! One of which was a chesse cake that was [still] frozen!!!
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Its maybe not so clear, so I’d recommend you check this out.