A Sydney-based work for the dole agency stands to make up to $7 million in guaranteed payments from the Federal Government, amid accusations the company has stopped paying local NT organisations to run activities for remote Indigenous jobseekers.

Jobfind Centre has the contract to run the work for the dole scheme in some remote areas, including for about 1,500 Territorians in the regions of Katherine and West Arnhem.

It has agreements with a number of organisations and individuals in those regions to provide work-like activities on its behalf.

But several groups have told the ABC their agreements with Jobfind have expired and the money has either dried up or new funding is being negotiated that would make it unviable to continue.

At the same time, for the next six months, due to a major revamp of the remote work for the dole scheme, Jobfind will get guaranteed minimum payments from the Federal Government worth 75 per cent of its fee.

Federal Indigenous Affairs Minister Nigel Scullion, who has been heavily spruiking the revamp as a key government policy, declined an interview about Jobfind.

The Federal Opposition's Indigenous affairs parliamentary secretary, Warren Snowdon, has been working with Senator Scullion on changes to the work for the dole scheme, called the Remote Jobs and Communities Program (RJCP).

While unwilling to comment specifically on Jobfind, Mr Snowdon said there had been some RJCP providers who had "exploited" RJCP for "their own motives".

"And most of those motives are driven by profit," Mr Snowdon said.

"I think organisations who have got reputational issues will want to make very, very sure that they do the right thing."

Yagbani Aboriginal Corporation, on the island community of Warruwi 300km east of Darwin, said its agreement with Jobfind expired at the end of June and the Sydney company was not responding to requests for contract renewals.

Others, such as Katherine artist May Rosas, told the ABC they had been offered new contracts for less money that would drive them to the wall.

Rosas said her arts program — which has 20 participants, many of whom had experience with drugs, alcohol or domestic violence — had to provide more than just training to get people job-ready.

"Our people are the most disadvantaged in the country," she said.

"Literacy and numeracy is a huge concern. They have hearing and vision impairment.

"It really puts us in a situation where we're handling very, very difficult and complex situations on a day-to-day basis.

"I feel we've succeeded so much in a short time with very minimal funding."

PM's department overseeing overhaul

Industry insiders say Jobfind has taken a hit in other, more major areas of its business operations recently and has cut staff from 500 to about 50 nationally.

The majority of Jobfind's business used to come from servicing urban jobseekers, but it closed most of its urban offices this year after Federal Government contracts were awarded elsewhere.

Some community organisations fear Jobfind is using the Government's period of grace for RJCP providers as a way to consolidate its financial position.

Jobfind's new chief executive Stirling Hay would only provide a statement saying the company would not respond to rumour or speculation.

"... I have been undertaking a review of our operations with our management team and the company is heavily engaged in the implementation of these new arrangements," he said.

"This includes the current negotiations with community organisations and a major recruitment drive to increase the level of services across the region."

The Department of Prime Minister and Cabinet is overseeing the change to RJCP, which will be renamed the Community Development Program (CDP).

Providers will eventually take on more jobseekers and keep them busy for longer.

A department spokesperson said the guaranteed payments to providers during the transition period would not be exploited.

"Providers are required to provide proof of participation and activities during this transition period," the spokesperson said in a statement.

But a draft funding agreement circulated by the Government in March makes clear providers' guaranteed payments are not linked to activities on the ground.

An excerpt from the draft agreement reads: "For clarity, during the start-up period, the amount of work for the dole payment will not be affected by either whether a work for the dole project is conducted by you [the provider], your subcontractor, or by a WfD host [or] whether or not the compellable WfD jobseeker has been placed by you [the provider] in a work for the dole project."

Draft payment details deemed necessary

Jobs Australia chief executive David Thompson represents not-for-profit organisations that work in this sector.

He said those draft payment details were now in force and were deemed necessary to help providers prepare for the scheme overhaul when it comes into full force next year.

"They've got to spend the money to do that," Mr Thompson said.

"The payment model that they'll eventually operate on will mean that if people don't turn up to work for the dole, the providers don't get paid."

The Department of Prime Minister and Cabinet will pay providers a minimum $780 for each "eligible" jobseeker it has per month during the transition period.

Using the department's June count of Jobfind's 1,525 caseload for Katherine and West Arnhem, the company could stand to make up to $7.1 million in six months, though caseloads vary from month to month.

A department spokesperson said not every individual in a caseload would qualify providers for a $780 payment — some would only be worth $333 a month to providers.

But when asked for a breakdown on the numbers for Jobfind's 1,525 caseload, the department refused.