CEO Emma Campbell says any new ACT government would need to implement a more progressive and equitable tax system, through the use of targeted concessions and rebates.

It would also need to urgently address a shortfall of more than 3000 social housing units in Canberra.

ACTCOSS released its annual cost of living report on Wednesday, finding housing, health, and energy prices in Canberra have risen at rates that were higher than the national rate and above the overall consumer price index over the past five years.

"The next ACT government needs to take a targeted approach to cost of living - one that is informed by a detailed understanding of community need," Dr Campbell said.

She welcomed the debate about cost of living, but said it should be focused on the lowest income earners in Canberra.

"The challenge when you focus on cost of living without that target is that you risk decreasing your revenue basis and not being able to fund services, so you entrench disadvantage," she said.

"We welcome a focus on reducing car registration. But $2 a week for most people in Canberra is not going to make a big difference to their quality of life, but it's going to lead to $100 million off the ACT's total revenue.

"If there is a cut to these types of fees and charges they should be given to those on low incomes where these small amounts can add up."

The report said housing was the most significant cost for low-income households, the majority of whom rent.

It said about 43 per cent of low-income rental households in the ACT were experiencing rental stress, paying more than 30 per cent of their household income on rent.

Low income homeowners were also feeling the pinch due to the government's tax reform agenda which has jacked up residential rates while phasing out stamp duty.

The association's analysis of CPI changes found Canberra's property rates and charges had increased by 51.7 per cent compared to 17 per cent nationally because of this reform.

The report said lowest income families were spending more on stamp duty and rates as a proportion of their income under the new tax policy.

It pointed to the 2019-20 ACT budget's cost of living analysis, which found general rates could now account for between 5.24 per cent to 15.64 per cent of the income of a single aged pensioner who owns a house, after applying the government's pensioner rates rebate.

"Land taxes are a critical means through which the ACT government can raise revenue to pay for essential community services and infrastructure," the report read.

"Based on the proportion of income households in different quintiles spend on stamp duty and general rates, the ACT government's tax reform program does not appear to have made the system more progressive.

"Overall, the reforms appear to have left low-income owner-occupier households slightly worse off."

The organisation wants a future government to make the new taxes more affordable for low income households by increasing and better targeting rebate schemes.

"There needs to be close and careful monitoring of the impact of this tax reform on low-income homeowners for whom general rates may account for a significant and growing proportion of household income," the report read.

"This is especially a concern for those low-income households that are unlikely to benefit from the reduction or removal of stamp duty.

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"Single parent households which are predominantly headed by women appear to be a key at-risk group, as are older owner-occupiers on low or fixed incomes."

Dr Campbell said about 30,000 Canberrans were living below the poverty line, despite the territory have the highest average earnings in the country.

"For those on low incomes, the cost of living in Canberra means many cannot afford the fundamentals of a healthy life such as food, housing, health services, and energy," she said.