Chief executive Andrea Creado said Ishar�s Family Support Program, federally funded since 2006, and the Settlements Grant program, would no longer be able to service Mirrabooka and surrounding areas due to the cut.
As part of the Family Support Program, Ishar offers multicultural family support groups, swimming lessons, school holiday activities, a creche and information events.
The Settlement Grants Program provides orientation to Australian services for women and their families who arrived on a refugee or humanitarian visa and have been in Australia less than five years.
Ms Creado said the programs cost about $400,000 to run annually and supported about 400 women and 200 children each year.
The programs also help with challenges such as language barriers, getting a job, learning to drive, getting a house and making friends.
Ms Creado said the biggest loss to the families was their extended families.
�The methods of socialising and communicating are very different in a western culture compared with more community- based cultures,� she said.
�Families find it really hard to make friends, to get guidance, and for families with young children, they�re looking for someone to offer them support, advice and guidance in how to raise their children.
�At Ishar they make friendships, they meet other people, they realise they are not the only ones having these problems.�
Ms Creado said more than 15 staff would lose their jobs because of the cuts.
Stirling MHR Michael Keenan said he was disappointed that Ishar�s funding was unsuccessful.
Social Services Minister Scott Morrison was contacted but the Eastern Reporter did not receive a response by deadline.