Gyms vs The Government: The Break-Up Might Finally Be Mutual
For decades, gyms have quietly perfected one of capitalism’s most underrated art forms: the subscription trap. Motivation fades. Life happens. Your membership direct debit? Eternal.
Cancel?
Sure, just bring:
• proof you moved to a town with no branches
• a medical certificate stating you cannot squat
• your firstborn
• time to meet Karen the manager between 10:03–10:07am on Thursdays
And now, the government wants it to stop.
Assistant Competition Minister Andrew Leigh has flagged that reforms targeting “unfair trading practices” will explicitly cover gyms, meaning it should be as easy to cancel as it is to sign up.
Gyms? Not loving it.
The Industry Case: ‘We’re Not Netflix’
Peak industry body AUSactive, representing Anytime Fitness, Snap, Fitness First, Fernwood and others, says the reforms might hit bricks-and-mortar businesses the hardest and risk treating real-world gyms like streaming platforms.
Their CEO Ken Griffin puts it like this:
“Scaled online business models such as Netflix are fundamentally different to owning a gym, which means a physical place which requires the owners to pay rent and pay for staff, supervision and other running costs.”
Translation?
Netflix doesn’t have to replace squat racks or pay cleaners. Gyms do. So if cancellations suddenly become one-click simple, the industry worries their revenue becomes one-click unstable.
And those 12-month ‘commitment deals’?
They’re not a sales tactic.
They’re the business model.
Image credit: Active Management, AUSactive CEO Ken Griffin
Consumer Advocates: ‘Gyms Invented Subscription Traps’
Meanwhile, Erin Turner, CEO of the Consumer Policy Research Centre, says the quiet part out loud:
“I think gyms are the originators of subscription traps… If the only reason you’re making money from a customer is because they’re trapped in, then that’s what this law is trying to stop.”
Translation:
If the hardest workout you offer is the cancellation process, you’re the problem.
Turner also points to unfair exit penalties, medical proof requests, and forced in-person cancellations as textbook dark-pattern behaviour.
And yes, this has been happening for years.
The Human Side: Small Gyms Say They Can Adapt
Not everyone is panicking.
Lynsey McGee, who runs Hiscoes Gym in Surry Hills, gets that members aren’t debit machines:
“Membership is far and away how we make money and run the businesses. So having ongoing memberships, and making members want to renew is really important.”
Her strategy?
Make leaving easy, so people actually come back.
Adult behaviour. We approve.
Image credit: Hiscoes Gym, Surry Hills, Lynsey McGee
What The Law Will Actually Do
The government’s proposed Unfair Trading Practices Framework would:
✔ ban “subscription traps”
✔ require clear cancellation terms upfront
✔ prevent proof-heavy exit barriers
✔ stop exit fees exceeding the contract value
✔ make cancellation processes reasonable
Think:
Cancel online? You can cancel online.
Without needing a stat dec signed by your Pilates instructor.
The reforms have already been backed in principle by state and territory consumer ministers, with legislation expected in 2026.
And Here’s The Part People Miss: What The Government Has Actually Said... In Writing
This isn’t vibes-based policymaking. The Australian Government has confirmed in official consultation documents and ministerial communiqués that the goal is simple:
It must be as easy to cancel a subscription as it is to sign up for one.
Meaning:
• If you joined online, you must be able to leave online.
• If the terms weren’t clear, the law will consider that an unfair trading practice.
• If you’re being made to prove injury, relocation or life-collapse just to leave, that’s the exact conduct the reforms are targeting.
State and territory Consumer Affairs Ministers have already agreed the Unfair Trading Practices Framework should include bans on “dark patterns” and unreasonable barriers to exiting contracts.
Assistant Competition Minister Andrew Leigh has publicly stated that gyms and other recurring service memberships are expected to fall within scope.
And regulators like the ACCC will finally have sharper teeth to go after businesses that design friction into cancellation as a revenue tool.
It’s not just a policy drift.
It’s a legal reset, and it’s coming.
Why Gyms Are Nervous
Because the industry runs on:
$2.2 billion in membership revenue
out of $3.7 billion total annual income
And here’s the truth:
Gyms aren’t scared people won’t join.
They’re scared people will leave, because now they actually can.
This Has Been A Long Time Coming
The CPRC says gyms were using hard-to-cancel contracts before apps existed. The push now simply acknowledges reality:
If your retention strategy is paperwork,
don’t blame the law.
Blame the business model.
The Takeaway
Gyms say they need certainty.
Consumers say they deserve fairness.
The government says, how about both?
And maybe the future looks like this:
You stay because you love the place.
Not because someone hid the exit behind a motivational poster.
FAQs — Gym Membership Cancellations In Australia
Can I Cancel A Gym Membership Anytime In Australia?
Not always, but it’s getting easier. Under proposed unfair trading reforms, gyms will need to make cancellation clear, reasonable and accessible without hoops, proof games or in-person traps. Lock-in contracts can still exist, but the exit process must be fair and upfront.
What Are ‘Subscription Traps’ In Gym Memberships?
Subscription traps are when cancelling is harder than joining. Think forcing you to show up in person, demanding proof you moved or cannot exercise, hiding cancellation links, or charging excessive exit fees. The new reforms aim to ban this behaviour.
Will I Still Pay Fees If I Cancel Early?
Maybe, but gyms will not be allowed to charge more than the value of the contract, and fees must be disclosed upfront. Surprise costs are not okay under the proposed framework.
Do Gyms Still Require Medical Certificates Or Proof Of Moving?
Many do now and that is the problem. The proposed laws would restrict unreasonable proof barriers, meaning cancellation should not require your doctor, your landlord and a statutory declaration anymore.
Will These New Gym Cancellation Laws Definitely Happen?
State and territory consumer ministers have backed the reforms in principle, and legislation is expected to progress through 2026. Translation: the system is moving slowly, but in consumers’ favour.
Are Any Gyms Already Making Cancellation Easier?
Yes, some independent and boutique gyms are ahead of the curve. Hiscoes Gym in Surry Hills says easy exits actually bring members back. Adult behaviour. We approve.
Why Are Gyms Worried About These Laws?
Because membership contracts are the business model. The fitness industry says friction free exits could hurt revenue predictability, especially for smaller operators with real world costs like rent, staff and supervision.
What Should I Look For Before Signing A Gym Contract?
Check for clear cancellation terms, realistic freeze or hold options, exit fee caps, and the ability to cancel online. If the exit process looks like an endurance event, walk away.
Do These Laws Apply To Online Fitness Subscriptions Too?
Yes, reforms target unfair trading practices across the board. If it auto renews and makes cancelling painful, it is in scope.
Can gyms refuse to cancel your membership?
Only if the contract terms are clear and lawful. That is exactly what the reforms are tightening.
Is it illegal to make gym cancellations difficult?
Not currently, but the reforms aim to change that.
Can I cancel a gym membership online in Australia?
Soon, it should be as easy to leave online as it is to join online.
Citations / Sources:
• Sydney Morning Herald — Elias Visontay
• Consumer Policy Research Centre — Erin Turner
• AUSactive — Ken Griffin statements
• Australian Government — Unfair Trading Practices Framework consultation + ministerial communiqués
• ACCC consumer law commentary
• Industry breakdown — IBISWorld
