Record low interest rates are a sign the economy is in transition, not that it's in crisis, Finance Minister Penny Wong says.
The Reserve Bank is widely expected to cut the cash rate on Tuesday at its monthly board meeting.
Shadow treasurer Joe Hockey says the central bank should not be in the position of having to cut the cash rate because the economy should be growing faster.
Senator Wong says Mr Hockey's comments show how out of touch he is.
"It's a pretty extraordinary position saying to Australian families 'I want you to pay more on your mortgage'," she told ABC television.
She said the coalition treated interest rate cuts under former prime minister John Howard as a sign of good economic management but was now framing it as a negative thing.
The minister was repeatedly asked whether recent rate cuts suggested the economy was slowing and needed a kick-start.
"The RBA and the government have made clear, we are going through a significant transition in our economy," she said.
The resources boom was "coming off" and China's economic growth was moderating.
"Low interest rates are part of managing that change and that's ultimately a matter for the Reserve Bank," Senator Wong said.
