This week’s federal budget carries over previous funding to seal one of Australia's most iconic stretches of desert road. 

The federal government this week confirmed it would provide $678 million in funding to seal the remainder of the Outback Way - a road also known as Australia's longest shortcut.

More than half of the 2,700km stretch from Laverton in Western Australia to Winton in Queensland, via the Northern Territory’s Red Centre, remains unpaved.

The investment is a budget commitment made by the previous Coalition government and carried through by Labor.

The Outback Highway Development Council (OHDC) has pushed for over 20 years to have the road upgraded, and welcomed its inclusion in the latest budget as a “moment in history”.  Over $1 billion has been poured into the Outback Way to upgrade and seal the route since the OHDC was formed in 1997. 

Each year, thousands of tourists and truckers travel the well-worn track, passing through dozens of outback towns and remote communities.

The promised funding comes alongside another major infrastructure pledge - $740 million to upgrade the Tanami Road and Central Arnhem Road, and funding to pave the scenic Mereenie Loop.

Tourism Central Australia chief executive Danial Rochford says the various road funding commitments only came after years of advocacy.

“With the announcements … it will only prove that all roads lead to Alice Springs, and that's going to be a boon for the drive tourism market,” he said.

“People will be able to go from anywhere in Australia to Alice Springs with their caravan … and what we know is grey nomads spend money and they spend money in our local economy, and that's going to be great for our future.”