The Federal Opposition has vowed to boost Defence spending to equip the military to protect Australia's interests over the next 25 years.

Opposition Leader Kevin Rudd made the pledge to "spend what is necessary" to equip and strengthen the Australian Defence Force (ADF) during a major speech fleshing out Labor's national security plans.

Labor will only offer up the cash after a national audit of the Defence budget, aimed at getting a true picture of the impact of cost overruns and project bungles that have plagued the organisation.

"In response to that audit, we will do what is necessary and spend what is necessary to develop a strong, flexible and well-equipped Defence Force to serve Australian interests over the next quarter century," Mr Rudd said.

The generous promise could create problems for Labor - which is deflecting government claims it will put Australia's prosperity at risk by overspending in office.

Mr Rudd did not explain how Labor would prevent a repeat of problems the Howard government has had with DMO, such as the Seasprite helicopters or the upgrade of the guided missile frigates.

However, he indicated strong ministerial leadership was crucial.

A Labor government would commission a new Defence White Paper to re-evaluate Australia's changed strategic circumstances.

"Defence policy should be more than an annotate list of current military engagements," Mr Rudd said.

"Defence should be about long-term planning mechanisms."

The white paper would also lay the groundwork for a comprehensive national security statement which, along with a new Office of National Security, would be aimed at helping the nation coherently respond to the changing security environment.

"We will write a more comprehensive national security statement that clearly articulates the strategic rationale and capability requirements for all our security, intelligence and related agencies," Mr Rudd said.

Mr Rudd reiterated Australia's alliance with the United States would be a central pillar of both Labor's defence and foreign policy.

The alliance was strong enough to withstand disagreements - such as Iraq - but they would be the exceptions rather than the rule.

Mr Rudd again outlined Labor's strategy for a phased withdrawal from Iraq in consultation with the US and Iraqi governments.

Labor would allow combat forces in southern Iraq to remain in place for their current rotation, as well as another six month period, meaning they could stay in place for up to a year if Mr Rudd was to win the election.

In Asia, Labor's policy drivers would include the question of China and Taiwan, troubles on the Korean peninsula and the brittle relationship between India and Pakistan.

"It should be of concern to Australia's long-term defence planners that all three of these unresolved territorial disputes within our wider region involve nuclear weapons states," Mr Rudd said.