Return to budget on Defence pay: Shorten

Labor says the government's revised pay offer to Defence personnel is too little too late.

Prime Minister Tony Abbott on Monday announced the government will drop plans to cut $17 million in ADF personnel allowances.

But a 1.5 per cent a year pay hike, which critics say represents a cut in real wages because it is below inflation, is unchanged.

"Tony Abbott's announcement today is too little too late," Mr Shorten told reporters in Canberra.

"I call upon Tony Abbott that if you know these cuts are unfair, don't do a half-hearted retreat - you need to get it right."

Mr Shorten said the government should return to the proposed three per cent rise outlined in the May budget.

"Tony Abbott loves to talk about rebooting and taking barnacles off the hull of his budget but there are no Australians who support implementing a real pay cut for our Defence forces."

Mr Shorten received a petition calling for a better pay deal.

The petition's 60,000 signatures are expected to top 200,000 within weeks.