The Urban Development Institute of Australia has warned Prime Minister Malcolm Turnbull against increasing the GST, fearing it would only add to an already expensive housing market.

According to the institute, the $560,000 median price for a new home in Canberra would increase to $585,455 if the GST was raised to 15 per cent.

Canberra Business Chamber chief executive Robyn Hendry said there was not enough affordable housing in the ACT and any GST increase would place further strain on the market.

"Many people have expressed surprise at how expensive housing is here because they assume it would be more like a regional centre than other capital cities, with the exception of Sydney," she said.

"Increasing the GST would raise the cost of building a house although that would be no different to many other sectors and jurisdictions."

But ACT Real Estate Institute chief executive Ron Bell said Canberra was one of the most affordable places in which to buy a house in Australia given high disposable incomes.

"If you increase the GST then there should be provisions to eliminate stamp duty in states and territories as that would have a dramatic impact on affordable housing," he said.

ACT Chief Minister Andrew Barr said any change to the GST would need to be considered as part of a broader reform package.

"We would need to see detailed modelling on the impact on households and businesses and possible compensation packages," he said.

"If the GST were to increase the impact on housing would also have to be carefully considered."

In 2012, the ACT government began an ambitious plan to phase out stamp duty and insurance taxes, replacing the revenue with higher rates.

Mr Shephard called on treasurers to follow the ACT government's lead and phase out stamp duties, describing it as "among the least efficient and most economically damaging taxes available to governments".

"They reduce labour mobility and productivity by locking people into a certain location, and along with other high up front taxes and charges, reduce housing affordability and the supply of new housing."

"There is a strong and growing consensus across the community about the need for governments to replace them with something better."

Australian Chamber of Commerce and Industry chief executive Kate Carnell, a former Liberal ACT chief minister, said she supported the scheme and welcomed leadership from the ACT.

"The ACT has been ahead of the pack in terms of phasing out stamp duty and broadening the land tax and these are good steps to have taken," Ms Carnell said.

"To some extent, South Australia has moved to abolish stamp duty on commercial properties although they haven't quite taken the steps the ACT has."

Former federal opposition leader John Hewson said stamp duty and taxes on insurance should be gradually phased out in other states and territories.

"[Stamp duty] is a transaction tax that distorts things and we should be moving as far away from it as possible in a genuine tax reform," he said.