Defence experts are urging the federal government to boost military spending by $40 billion over the next three years and $200 billion over the decade, amid demands by President-elect Donald Trump for US allies to take on more of the security burden.

As China rapidly builds up its military, experts said Labor and the Coalition needed to rapidly increase defence spending to the equivalent of 3 per cent of gross domestic product, up from the current benchmark of 2 per cent of the economy.