Consumer Contracts · Australia

The Gym Membership Trap: Minimum Terms, Cancellation Fees and Recurring Payments in Australia

You stopped using the gym months ago. Your bank account didn't. Before assuming the charges must stop, check the membership term, renewal mechanism, cancellation clause and the evidence you have.

Stopping Attendance Is Not Automatically Cancellation

A gym membership is a contract. Not attending does not, by itself, end your payment obligation — the membership continues until it is properly cancelled under its terms, or until a specific circumstance entitles you to end it early.

Minimum Term, Notice Period and Cancellation Fee

Read these provisions together — a contract can look reasonable clause by clause but become much harder to exit when the minimum term, renewal and notice period interact.

Australian Regulators Have Challenged Certain Gym-Style Renewal Clauses

Consumer Affairs Victoria has published guidance specifically addressing unfair terms in health and fitness club membership agreements, including concerns about automatic-renewal and minimum-term clauses that can leave members locked in without a genuine, transparent way to exit.

When an Unfair-Term Question Can Arise

Since 9 November 2023, a term in a standard-form consumer contract can be unfair — and unlawful, not merely unenforceable — if it causes a significant imbalance in the parties' rights, is not reasonably necessary to protect the legitimate interests of the business, and would cause detriment if relied on. The ACCC's guidance on unfair contract terms sets out this test in more detail.

Build the Evidence File

  1. The signed membership agreement and its terms.
  2. The advertised price and any promotional terms.
  3. The minimum term and notice-period clauses.
  4. Your cancellation request and the date you sent it.
  5. Any confirmation received from the gym.
  6. Bank or card statements showing charges after your cancellation request.
  7. Any evidence of special circumstances, such as injury or relocation.

If the Gym Refuses to Stop Charging

Put your cancellation request in writing, referencing the specific clause and date. If the gym continues charging you after a valid cancellation, dispute the charge directly and escalate to your state or territory consumer affairs agency if it isn't resolved.

What This Means for You

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