Australia

A gym locked me into a 3-year contract with no exit clause. Can I get out of it?

3 years
Contract length
ACL s.23
Unfair terms law
$10M+
Penalty cap
No exit
Prohibited term
The Short Answer

Yes, you may be able to cancel the contract if it's an unfair term under the Australian Consumer Law — especially if it locks you in for 3 years with no reasonable exit option.

What the Law Says

The Australian Consumer Law (ACL) protects consumers from unfair contract terms in standard form consumer contracts — including gym memberships.

If your gym contract is a 'standard form contract' (i.e., pre-prepared, offered on a 'take it or leave it' basis), and you're an individual acquiring services for personal use, the ACL applies.

A term that locks you into a 3-year commitment with no termination rights — especially without reasonable cause like illness, relocation, or financial hardship — is likely unfair under section 23 of the ACL.

An unfair term is void, meaning it has no legal effect — but the rest of the contract may still stand if it can operate without that term.

Statutory Text

A term of a consumer contract is unfair if it would cause a significant imbalance in the parties’ rights and obligations arising under the contract.

Australian Consumer Law, s. 23(1) — Unfair terms
Statutory Text

A term is not unfair if it is transparent and is a term that is reasonably necessary to protect the legitimate interests of the party who would be advantaged by it.

Australian Consumer Law, s. 23(2) — Exceptions

What to Do

1

Check your contract: Is it labelled 'standard form'? Was it offered without negotiation?

2

Write to the gym citing ACL s.23 and state the 3-year no-exit clause is unfair and void.

3

If they refuse, contact your state’s consumer affairs agency (e.g., NSW Fair Trading or VIC Consumer Affairs).

4

You may also apply to the Federal Court or Federal Circuit and Family Court for a declaration that the term is unfair.

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.