Federal Resources Minister Josh Frydenberg has warned people to get used to what he calls a "normalised" growth pattern in China and lower commodity prices.

Economists have said the economic slowdown is wiping out government revenue in Australia, with the ASX losing tens of billions of dollars since the start of the year.

Crude oil reached 12-year lows this month and the falling iron ore price has forced job cuts across companies including Rio Tinto, BHP and Fortescue Metals.

Mr Frydenberg said the combination of slower growth in China and increased supply of resources has led to the new dynamic of falling prices.

He said Australia has to "get used to these lower prices for longer".

"But at the same time my message is to Australians is that the fundamentals are still strong, namely greater population growth, greater urbanisation, greater middle classes," he said.

Mr Frydenberg said December's economic update made it clear revenue projections were written down, due in part to lower commodity prices.

He said commodities would continue to provide billions of dollars to government coffers, "just not as much as it has in the past".

"There are still some positive signs over the horizon about demand," he said.

"Prices have dropped significantly [but] I still think that Australia will be a great beneficiary out of its resource sector."

Treasurer Scott Morrison also weighed in on the market, saying "smarter analysts" were not overreacting to the falls.

Mr Morrison told Sky News the Australian economy was transitioning out of the resources boom but fundamentals, including jobs growth, remained healthy.

"It's always a time when you see this sort of volatility to keep a cool head," he said.

"The Government's plan is exactly as it needs to be and that is to continue to do things to boost earning, enterprise in our economy, to boost employment and jobs, and we're seeing those results come through and that's very heartening."