Plans to build new facilities in Canberra to co-locate the RSPCA and the ACT Government's Domestic Animal Services (DAS) are on hold due to the charity's financial woes.

The RSPCA posted losses of more than $550,000 last financial year.

Territory and Municipal Services Minister Shane Rattenbury said plans for the merger between DAS and the RSPCA and building a new facility have been put on hold.

"The RSPCA has asked for a bit of time while they work through some current difficulties and really assess what their plans are for the future," he said.

RSPCA ACT chief executive Tammy Ven Dange said the charity was struggling because the Government did not fund them properly for the services they provided.

"We've done some significant cost accounting exercises to see how much is it actually costing us to provide all those services ... and the funding is well short of those requirements," she said.

"We're probably going to have to drop some services because we can't keep doing this."

The Government provides 15 per cent of the RSPCA's funding.

Ms Ven Denge said the RSPCA had lost money in eight out of 10 previous financial years.

"We don't have a lot of money in reserves at the moment," she said.

"To continue to provide services as we are and continue to lose money, we just can't keep doing that."

The ACT Government's Domestic Animal Services only take care of stray dogs. ( ABC News: Anna Morozow )

Mr Rattenbury said the Government was in discussions with the group.

"We're working through the details of their funding situation and working out what their responsibilities are and what level of Government funding should match that," he said.

"The RSPCA of course does many other things beyond what the Government expects them to do."

But Ms Ven Dange said no other group providing Government services would be expected to operate at a loss.

"Domestic Animal Services only look after stray dogs," she said.

"We take all the puppies, we take any injured animals - and we see just as many stray dogs as they do every year.

"But we're the only place you can find a stray cat or kitten, we take goats, rabbits, roosters, guinea pigs, fish - anything else that's domesticated.

"They only look after dogs, we do everything else."