Fitness Industry Responds to Government Subscription Trap Reforms in Australia
AUSactive Leads Industry Submission on Consumer Protection and Fair Trading
Australia’s exercise and active health sector has delivered a major industry submission to the Australian Government following national consultation on proposed subscription trap reforms and unfair trading practices.
Coordinated by AUSactive, the submission represents businesses supporting more than 3.5 million Australians and reflects strong engagement across the fitness industry.
The sector broadly supports reforms aimed at improving consumer protection, transparency, and trust, while also calling for:
- Clear regulatory guidance
- Fair and practical implementation timelines
- Recognition of industry-specific operating models
Strengthening consumer confidence in fitness memberships is essential to long-term participation in physical activity and active health services.
👉 Read the full submission: https://ausactive.org.au/wp-content/uploads/2026/03/AUSactive-Consultation-Response-Subscription-Traps.pdf
Industry Supports Reform with Key Considerations
Feedback from industry surveys shows strong support for reforms that enhance:
- Transparency in subscription terms
- Consumer rights and protections
- Trust in fitness service providers
However, AUSactive emphasises that fitness businesses operate differently from digital subscription services.
Gyms, studios, and community fitness centres rely on:
- Physical infrastructure and equipment
- Qualified staff and safety compliance
- Ongoing access for members
Membership agreements provide critical revenue stability, which must be considered in the design of new legislation.
Operational Impacts of Proposed Subscription Law Changes
Businesses identified several areas where subscription reform legislation may require operational adjustments:
- Renewal notifications and reminders
May require new automated systems and updated communication processes - Technology and system upgrades
Including changes to CRMs, payment platforms, and websites - Franchise network coordination
Clearer roles needed between franchisors, franchisees, and technology providers
These factors highlight the need for practical implementation timelines and clear compliance frameworks.
Key Recommendations to Government
AUSactive’s submission outlines actionable recommendations to support the sector:
- Phased implementation with a clear transition period
- Detailed compliance guidance for fitness businesses
- Clarification of roles across franchise and technology partners
- Alignment with Australian Consumer Law (ACL)
- Ongoing industry consultation
- National consistency across state and territory regulations
- Funding support for education and transition initiatives
Supporting AUSactive Members Through Regulatory Change
AUSactive will support members in adapting to the new legislation with:
- Compliance templates and checklists
- Business guidance resources
- Education and training materials
- Practical implementation support
We will continue to work closely with Government to ensure reforms are fair, transparent, and workable for the fitness industry.
Next Steps for Subscription Reform Legislation
AUSactive will now present the sector’s insights and policy recommendations to Government.
The final subscription reform legislation is expected ahead of the planned commencement date of 1 July 2027.
We are committed to keeping the industry informed as updates become available.
Have Questions or Want to Engage Further?
We thank all businesses that contributed to this consultation. Your insights have strengthened the industry’s voice and ensured Government understands the realities of operating in the Australian fitness and active health sector.
📩 For further enquiries or to engage directly:
mariana.ivantsoff@ausactive.org.au
