The Albanese government has promised a hefty investment of $53billion in Australian defence – meeting a target asked for by Donald Trump – but one expert says that's still not enough.

The Pentagon released its National Defence Strategy in January, with Trump calling on allies around the world to put at least three per cent of their GDP towards military spending.

On Tuesday night, Jim Chalmers and Defence Minister Richard Marles committed to Trump's target, with the Treasurer outlining in the Budget how he will be funnelling $53billion towards defence capabilities over the next 10 years – increasing the spend to three per cent of GDP by 2033.

Chalmers said this will see an increase in the Australian Defence Force's ability to deter and respond to threats, strengthen the sovereign defence industrial base and build self-reliance.

But the announcement has been slammed by Michael Shoebridge, founder of the think tank Strategic Analysis Australia.

'It is accounting tricks over actually spending more on our military,' he told the Daily Mail.

'The Albanese Government's defence plan is to pump up the headline defence figure by including a bunch of money from things like veterans' pensions and adding in private finance they hope to get.

'They want to pretend they are increasing the Aussie defence spend to around three per cent of GDP, because Donald Trump is demanding this - and more - from US allies.

'But the actual budget numbers show the dial isn't really shifting on the defence spend as a share of GDP. It's stuck around 2.1 per cent and climbs to about 2.3 per cent in about ten years.

'That's not 'historic' or 'generational' despite the Government's repeated claims.'

The Budget also highlights that up to $130billion will be spent over a decade on enhanced undersea warfare capabilities, with the support of conventionally armed, nuclear-powered submarines.

During the same period, the Albanese government has allocated up to $15billion for autonomous and uncrewed systems, such as low-cost drones and the Australian designed 'Ghost Bat'.

But the billions of dollars spent on weaponry have been criticised by Mr Shoebridge.

'The move from Marles aims to show Washington that a lot of the Australian money is going on buying equipment form the big American defence companies - like missiles and a lot of the expensive electronics going into future warships and submarines,' he said.

'So, the Albanese government's 'Trump management' strategy on defence is about inflated headline spending claims and lots of US weapons purchases.

'But, the overall alliance plan is to hold our breath until the Trump term is over, hoping we get the good old reliable US back.'

The Federal Budget also provides a further $583.4million to implement recommendations from the Royal Commission into Defence and Veteran Suicide.

There is also about $169.7million allocated for allied health services for veterans.

But these announcements have been criticised by campaign group Fair Care for Veterans' spokesman Kiel Goodman.

'Australians know we need more defence spending in an increasingly uncertain world,' he said in a statement.

'But they also expect the Government will properly care for the people asked to serve. Right now, they aren't looking after us.

'You can't announce billions for defence capability tonight while veterans continue to battle a broken support system at home.

'To protect our nation, we need to send a strong signal that we will support our veterans when we are injured in service.'

The campaign group cited polling conducted in April by the Melbourne-based research firm Fox & Hedgehog.

The national survey of 2,000 Australians found that ⁠50 per cent of Australians support increasing defence spending.

But it also found 70 per cent of Australians are in favour of more veteran disability support.

'The public clearly supports both a strong Defence Force and stronger support for veterans. Australians do not see those as competing priorities,' Mr Goodman added.