Govt 'grinch' on pre-xmas funding cuts

Community service organisations are considering shutting their doors after learning of funding cuts. (AAP)

There's little Christmas cheer for community service organisations which are considering shutting their doors after learning of government funding cuts.

The federal government is being accused of stealing Christmas for dozens of community service groups after delivering news of a funding cut.

Peak housing and homelessness advocacy bodies were among the many that learnt on Monday they would no longer receive federal government contracts from June 30, 2015.

But it appears a broader range of not-for-profit organisations have been affected by a new grants program under which unsuccessful applicants were informed the grim news just days before Christmas.

Australian Federation of Disability Organisations, Blind Citizens Australia, Deaf Australia and Down Syndrome Australia are among 10 peak disability organisations now contemplating closure or reduced services.

ADFO spokesperson Matthew Wright said the decision will leave the vulnerable without a voice and the government without the expertise of key advocacy groups.

The Australian Council of Social Services said it was shocking that the government would wait until almost Christmas eve to deliver the news, at a time when organisations were most stretched for help.

Labor labelled the move "callous in the extreme".

Newly-minted Social Services Minister Scott Morrison has been called on to reverse the changes.

But that's unlikely, with the minister instead spruiking $800 million in funding available to successful applicants to be notified in January.

Mr Morrison said the decisions were part of an "exhaustive, competitive" tender round and the cuts wouldn't affect frontline services.

"There will be some cases where organisations that have received funding are no longer, and there will be others ... which are now undertaking programs in the community," he told ABC TV on Tuesday.

The Australian Greens plan to move for a Senate inquiry into the departmental grants process when parliament resumes in February.

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