Thanks for all the posts here. I've really valued the debate on my OP. It has certainly opened my mind. I think I will continue to be pissed off when restaurants solicit tips (and I've already given Sepia a negative review on this basis). I will, however, probably tip more going forward than I used to.

I think it is great that Australia pays restaurant staff enough that they are not reliant on tips. I think that the tipping culture in US is just a way of giving waiting staff revenue based pay and doesn't really motivate good service. In the UK many restaurants just add a 12.5% supposedly discretionary service charge that also is no real incentive to offer good service.

I will tip more often going forward in Australian restaurants but I will continue not to tip unless I receive service that is above and beyond what I would expect (e.g. when paying $400 pp in Sepia I have pretty high expectations and these are unlikely to be surpassed). I will also not tip when tips are actively solicited (like in Sepia).

Thanks again for all the feedback.