The Northern Territory Government has postponed Aboriginal homelands funding changes amid concerns the process was rushed and ineffective.

The changes were meant to reduce red tape, consolidating municipal and essential services grants into a single grant.

Service providers were originally only given three months warning about the changes, with organizations banding together to voice concerns over the rushed process and the potential for job losses in remote communities.

The Department of Territory Families, Housing and Communities says that they will continue with the consultation process to better work with communities.