LEETON Phantoms president Bart Challacombe has labelled an increase in registration and insurance fees a blatant cash grab by the Australian Rugby Union (ARU).

Challacombe said clubs like the Phantoms would cease to exist if they are forced to pay - in Leeton's case - fees in excess of $14,000 before its players can run onto the field.

Under changes to fee structures being implemented nation-wide, rugby union clubs will be charged per player for insurance fees instead of the one-off fee paid in the past.

SIRU clubs will also be slugged a "Brumbies players fee" of $759 per team, based on a team of 23 players, to cover adminstration of the game in the region.

"When they first announced it they wanted us to keep it quiet," Challacombe said.

"Basically it's just a large cash grab.

"Insurance costs we've always had. Obviously it's important to have insurance.

"We have 85 senior registered players, that's in firsts, seconds and women's. That would mean new fees in excess of $14,000, as opposed to last year when we paid $4000 for those teams.

"On top of that, you've got to get the club running, with costs and SIRU fees on top of that as well."

Southern Inland Rugby Union (SIRU) clubs were informed of the changes at a meeting on November 16 by ACT Brumbies general manager - community rugby Craig Leseberg.

Leseberg confirmed via email with Challacombe that the national policy would roll out from 2015 and that the introduction of the Brumbies players levy would allow administration and servicing for grassroots rugby in the region in the wake of grant funding being removed by the ARU.

Challacombe said the junior and senior Phantoms operate on a total budget of about $40,000 per year and a fee increase of more than 300 per cent in one season was "beyond reason".

"It will result in a massive decline in the number of people playing rugby in Australia ... the complete opposite of the what the ARU is meant to be achieving," he said in an email to Leseberg and other SIRU clubs in response to the initial announcement.

Challacombe was also concerned the increases were based on a team of 23 players and didn't take into account the number of players a club required to complete a season in multiple grades.

"We try to keep the financial costs to individuals at a minimum to encourage participation no matter people's individual financial circumstance," Challacombe said.

"The new proposal will be a substantial increase in individual fees while seeing a reduction in what our club members receive.

"I would imagine I would be in the vast majority of amateur club rugby players in the country in believing that the ARU and various states, provinces (or) zones - Brumbies included - should not be targeting us to make up for their extremely poor, some would say extremely inept financial management over the past decade."