Australia’s Workout Market 2025: Trends, Costs, and Policy Impacts

Australia’s love affair with fitness is stronger than ever, but the way we work out—and pay for it—has undergone a seismic shift. In 2025, the workout market has become a dynamic ecosystem of digital platforms, boutique studios, and innovative membership models. With new government policies supporting preventive health, and consumers demanding more flexibility and value, the business of breaking a sweat is big business indeed.

Digital Fitness Takes Centre Stage

The COVID-19 pandemic may have sparked the at-home fitness revolution, but 2025 has seen digital fitness cement its position as a permanent fixture. From app-based HIIT sessions to live-streamed yoga, Australians are spending more than $1.2 billion annually on digital fitness subscriptions—a figure up 15% since 2023, according to recent IBISWorld data.

• Hybrid memberships: Major gym chains now offer hybrid packages, letting members switch between in-person and virtual classes to match their schedules.
• Wearable tech integration: Fitness apps sync seamlessly with wearables, offering real-time health data and AI-driven coaching.
• Affordability: Digital-only subscriptions average $19/month, undercutting traditional gym fees and broadening access to fitness for rural and lower-income Australians.

Boutique Studios and the Rise of Premium Experiences

Boutique fitness studios—from reformer Pilates to CrossFit boxes—have continued their meteoric rise, accounting for 38% of Australia’s $4.7 billion gym and fitness industry revenue in 2025. These studios cater to Australians seeking personalised experiences and community vibes, even as memberships cost up to $60 per session in major cities.

• Unique value propositions: Studios are differentiating with specialised offerings, such as women-only classes, wellness events, and nutrition coaching.
• Flexible packs: Session packs and pay-as-you-go models are popular, with 62% of boutique clients opting for flexible attendance over monthly contracts.
• Premium perks: High-end studios now offer amenities like sauna access, smoothie bars, and on-site physiotherapists, targeting affluent urban professionals.

Real-world example: In Sydney, Pulse Studios has doubled its membership since launching its hybrid digital/in-person model, while smaller towns are seeing community-owned gyms thrive with government grants.

2025 Policy Updates: Health Incentives and Regulation

The Albanese government’s 2025 budget earmarked $350 million for preventive health initiatives, with a portion allocated to subsidising gym memberships and fitness programs in lower socioeconomic areas. Key updates affecting the workout market include:

• Fitness rebates: Eligible Australians can now claim up to $250 per year in fitness-related expenses, including gym fees, digital subscriptions, and sports club memberships.
• GST review: The ATO has clarified GST exemptions for group fitness classes, reducing costs for small studios and encouraging broader participation.
• Wellness at work: New tax incentives for employers offering on-site or subsidised fitness programs, making workplace wellness a standard benefit in many industries.

These measures aim to reduce long-term healthcare costs by boosting physical activity, especially in communities with historically low participation rates.

What Does This Mean for Your Wallet and Wellbeing?

With so many options and policy incentives, Australians can now tailor their fitness journeys to both lifestyle and budget. Digital platforms offer affordability and convenience, while boutique studios provide motivation and a sense of belonging. Government rebates and workplace wellness schemes are making access to premium services more democratic than ever.

As you weigh your next fitness investment, consider:

• Your preferred workout style and schedule flexibility
• Potential eligibility for government rebates or workplace subsidies
• Hybrid or pay-as-you-go models to avoid unused memberships

Ultimately, the 2025 workout market is all about choice and value—helping Australians get fitter, healthier, and savvier with their money.