But the ACT Brumbies have defended a new levy to be imposed on senior and junior players as they seek to recoup a $250,000 reduction in Australian Rugby Union annual funding.

Some ACT clubs will be forced to increase junior registration fees from $150 to $200 next year, and senior costs will rise as high as $300, to cover all new fees.

Royals junior rugby president Keiran Larnach fears the cash-strapped ARU is using clubs to ease the financial pressure, but that players will defect to rugby league.

"It just seems like our costs going up are getting the ARU out of a hole and it's going to elite players," Larnach said.

"I realise rugby as a sport has charged too little for too long. But my issue is where the money is going. We might have to consider our future in this competition.

"Whether we take over some school-based competition in Duffy, Chapman and all the schools in our area. If it was untenable for us to operate as a junior club, we'd have to look at the future ... the new cost from the Brumbies is a shock.

"Participation numbers in ACT rugby have decreased in recent years and we see this as being the straw that breaks the camel's back. We're proposing to charge $190-$200 [next year]. The Woden Rams rugby league team will charge $150.

"If you're a family of three kids, $600 is a lot for sport. We're going to lose teams and players next year and it will be unrecoverable for the sport."

The Brumbies are expected to report a loss of $1 million at the annual general meeting next week. They have been hit with a significant funding drop from the financially struggling ARU.

The Brumbies are also searching for a major sponsor before the Super Rugby season begins, and a new chief executive.

But community rugby manager Craig Leseberg said the new levy would be used for community rugby development and was essential for the future of the sport.

"I can understand the angst and anxiousness ... it's a change and there is a little bit of anxiety," Leseberg said.

"It's an online registration system that brings us into line with other sports and enables a solid financial foundation to administer the game. The ARU funding ceases in the community element of the game next year.

"All the money acquired through the levies goes back into administering and servicing grassroots rugby. Rugby remains affordable and value for money on an individual basis compared to other sports.

"Purely from the community rugby aspect, we're losing significant funding from the ARU and these levies are critical to continue delivering the game."

An Australia-wide registration system will be put in place next year. Players will enter their details and pay insurance, a national participation fee (ARU) and a member union fee (Brumbies).

The member union fee is a new tax, while insurance costs will be paid by individuals instead of clubs.

Clubs will set their own price structure for full registration. For example, Royals' junior fee of $190 comprises $8 insurance, $27.50 national participation, $44 Brumbies member union, $39.50 to the ACT Junior Rugby Union, plus the costs of uniform, training ground and equipment hire.

The Brumbies have also offered Super Rugby memberships to help offset the rise in fees. They have offered a three-game Super Rugby package to senior players, will continue to provide memberships to all junior players and will include a 20 per cent discount for parents.

All players have to register individually online, and there are fears the extra red tape could affect casual player numbers in the lower grades.

Wests first grade coach Craig Robberds said: "Rugby is in trouble at the moment and the Brumbies are in trouble financially.

"People need to pull together a bit, otherwise there won't be rugby. The Wallabies took a pay cut as well.

"It might turn a few people away, but at the end of the day, if people are keen to play rugby it's not a lot of money when it's spread over a whole season."

ACT Junior Rugby Union president Martin Sullivan backed the new fees structure to ensure the future of the sport.

"I know it is a big shock and a big hit, but it's all for the good," Sullivan said.

"We've had a number of consultations with junior schools and clubs, and although it appeared we were providing bad news, we haven't had negative feedback. Rugby will still be providing one of the cheaper sports for children."