SYDNEY - China-Australia relations are entering a golden age thanks to China's local expatriate community, Australian Prime Minister Malcolm Turnbull said on Saturday.

"I think (China-Australia) will get deeper, and better and stronger in the years ahead," Turnbull told the leaders dinner for Australia's Chinese Community Association in Sydney.

Turnbull said the China-Australia Free Trade Agreement (FTA) is a fundamental foundation to Australia's future prosperity through the removal of trade barriers and the opening of markets to facilitate mutual prosperity.

However, the credit for the "golden age of Australia-Chinese relations" will not lay with politicians, though they will try and take it, Turnbull said.

"It lies with the Chinese Australian community because your understanding of China (and) Australia, you are better able than anyone to transact, to drive that relationship for the greater benefit for both of our wonderful nations."

The Chinese community is such an enormous part of Australia's modern, diverse and multicultural society, which Turnbull describes as the nation's greatest asset.

"And it is a great lesson for all of us, that the societies that are most open, that are most adverse, that embrace the modern term 'multiculturalism', are most strong," Turnbull said.

China's Ambassador to Australia Ma Zhaoxu agreed that the China- Australia relationship is indeed in a golden age "and I think we have to make the golden age even better in the future."

Ma said Chinese President Xi Jinping's visit to Australia in 2014 opens a new chapter in the strong bilateral relations.

"China and Australia are natural partners," Ma said.

"Our relationship is not about buying and selling.. its not for the short term interest, but the future of our two countries," Ma said in reference to the recently signed China-Australia FTA.