"We urge certain individuals in Australia to shake off the Cold War mentality, stop making irresponsible remarks and act in ways that are conducive to regional peace and stability rather than the opposite."
His comments came after one of the Federal Government's top national security officials yesterday warned the "drums of war" are beating.
Home Affairs Department Secretary Mike Pezzullo said Australia must work to reduce the risk of war "but not at the cost of our precious liberty".
In a speech Mr Pezzullo, warned that Australia must be prepared "to send off, yet again, our warriors to fight".
And earlier this week, Defence Minister Peter Dutton warned that China was militarising ports in the region.
But Treasurer Josh Frydenberg told Today the Federal Government's priority was maintaining peace in the Asia Pacific.
"Australia is a great beneficiary of a peaceful Indo-Pacific. That is our key priority to ensure peace in our region."
But Mr Frydenberg also said a strong and capable Australian Defence Force was necessary.