North Canberra Community Council also suggested residential parking permits on streets that suffer from commercial centre or school overflow, as well as the investigation of higher road user charges for motorists.

The recommendations, originally drafted in May, were submitted to the ACT government for consideration ahead of the 2017-18 budget.

The council's submission said population growth on the northside would put further pressures on the area's road network.

"Residential streets should be redesigned to discourage rat running and encourage more cohesive communities by introducing, amongst other things, cul-de-sac arrangements and residential streets where pedestrians have right of way," the submission said.

It also called for the further improvements for public transport, pedestrians, cyclists and car pool lanes.

NCCC chairman Denis O'Brien said members had spoken to as many people in north Canberra as possible about their thoughts on improvements for the area.

He said motorists using residential streets to avoid main thoroughfares, or "rat-running", was regularly raised as a problem.

"It's hit a sore spot with quite a number of people who can't get in and out of their driveway," he said.

"Over the last three or four years it's become pretty noticeable. But during the holidays you could walk down the middle of the street and not get hit."

Mr O'Brien acknowledged the 40km/h speed limit recommendation was a contentious one, but said it would lead to less severe crashes between pedestrians, cyclists and motorists in the suburbs.

He said the proposal could discourage people from "rat-running", but any success would depend on enforcement.

"If people don't think they'll get caught, they'll continue doing it," he said.

"Like all these things, no matter what you put in, there will always be someone who'll disagree with it totally. But the idea of this is to have the conversation, and I don't care what side you come down on, we'll be better for it."

Canberra's community councils are not local government bodies, but volunteer advisory and advocacy groups for the city's nine districts.

Though the 50km/h speed limit is the default in built up areas in every state and territory except the Northern Territory, some local councils in other jurisdictions have reduced the limits further in some residential areas.

Town centres in the ACT already have 40km/h speed limits, but the default limit for built-up areas remained 50km/h.

Interstate, the suburban areas of both Balmain and Rozelle in Sydney's inner-west have default limits of 40km/h.

The government has not conducted a whole-of-city review of speed limits, but considered reducing the school zone limit to 30km/h in high risk areas in 2015.

Community input on what the ACT budget for 2017-18 should prioritise closed on December 22.