Budget forecasts not affected by China

Treasurer Joe Hockey insists Australia's budget forecasts remain unchanged despite volatility in the Chinese economy and stock market.

The Chinese economy is in transition, Mr Hockey told reporters in Canberra on Tuesday, however expectations of growth of 6.75 per cent this year, 6.5 per cent next year and 6.25 per cent the year after, remained unchanged.

Mr Hockey said he'd been reassured by his Chinese counterpart about China's fiscal and monetary policy capacity to address some of the challenges.