ROMA residents already reeling from high insurance costs now have an additional burden after the State Government increased stamp duty on general insurance products from 7.5% to 9%.

Queensland Treasurer Tim Nicholls announced the changes in Tuesday's state budget which adds $25 to a premium on a $300,000 home with $75,000 of contents.

Mr Nicholls said the increase from August 1 would help fund the national disability insurance scheme.

However Federal Financial Services Minister Bill Shorten says the move would drive up insurance particularly in areas like Roma which had already been hit hard by steep rises in premiums.

National Insurance Brokers Association CEO Dallas Booth agreed saying insurance taxes were bad policy.

"It defies logic that the Queensland Government would be increasing stamp duty on insurance policies such as home and contents insurance at a time when it has paid out record amounts of flood relief in the past two years to those who were uninsured or underinsured," Mr Booth said.

Insurance Council of Australia CEO Rob Whelan said the move could lead to more underinsurance and non-insurance, particularly in areas exposed to floods.

"Stamp duties are inequitable, highly inefficient and unfair," he said. 

"You cannot improve insurance affordability by increasing insurance costs."