Gym bunnies are unlikely to get a reprieve following proposed exceptions to the GST increase.

GST will rise from 12.5 to 15 per cent on October 1 and the Government is planning to exempt certain types of contracts. For example, an annual insurance policy taken out before the rise where regular premiums are paid may continue to be charged at 12.5 per cent GST until it is up for renewal. It had been thought that this could apply to gym memberships.

But small businesses will find it too difficult to manage, Herald on Sunday has been told.