Federal Minister for Infrastructure and Transport Barnaby Joyce said the Western Highway was one of Victoria’s busiest highways.

“The Western Highway serves as a key transport corridor through Victoria’s western district and upgrading this section of the highway will significantly improve safety for all users including farming, tourism and manufacturing interests,” he said.

Between 2012 and 2017, there were 102 crashes on the Western Highway between Stawell and the South Australian border, including seven fatalities and 52 serious injuries.

Victorian Minister for Roads and Road Safety Luke Donnellan said the upgrades would aim to reduce the frequency of road incidents.

“Drivers have already seen the benefits of the 55 kilometres of the highway that’s already been duplicated and we’ll continue to build a better Western Highway to support local communities and jobs throughout Western Victoria,” he said.

Australia's roads is expected to be in the spotlight in 2018 as the federal government prepares to kick start a review into road pricing.

Urban Infrastructure Minister Paul Fletcher said the current road funding system had “some features that don't seem very fair”. 

“If you are able to buy a $125,000 Tesla, the amount you pay through fuel excise to use the roads is zero,” he said. 

Mr Donellan said the government was aware of this, as fuel excise reduced because cars used less petrol, there would be a change in taxes. 

“Obviously they don’t pay fuel excise, but they would pay registration and other charges along the way,” he said. 

“We need to look at having enough options for people in the outer and country areas, how do they get in and out of the city in a way they need to.

“If people don’t have another option besides driving than that is a bit unfair – we need other options.” 

Early works are underway, with major construction due to start in mid-January. Completion of the upgrades is due in late 2020.