Upgrades on the popular tourism route to the tune of $272.4 million will be included in the state government's 2020/21 budget.

Roads and Road Safety Mnister Ben Carroll said the work would be carried out on the Great Ocean Road and its inland routes, as well as key roads which support the south-west dairy industry.

This includes $140 million to upgrade and improve the resilience of the Great Ocean Road so it can continue carrying millions of people each year as Victoria's number one tourist route.

Corangamite Shire mayor Ruth Gstrein was overwhelmed by the funding announcement which she said had come off the back of "incredible" community and council lobbying.

"We've been advocating for our inland routes to be updated for a long time to ensure tourists and our farmers are safe on the road," she said.

"I think the local community will be relieved by this news. Some of our inland roads are in dreadful condition and people drive these roads everyday to get to and from work, school buses travel them and so does our dairy supply chain.

"This funding is making sure every single user of these roads will be driving on reasonable surfaces.

"Obviously the Great Ocean Road is an iconic road and absolutely deserves spending. While the roads have been quiet over the past couple of months, we're expecting increased domestic travel and international travel to come back strong. We want the roads to be as safe as possible for tourists and the community."

Mr Carroll said the upgrades would include rebuilding road pavement, bridge strengthening, geotechnical works and safety upgrades.

He said $115 million will be invested into upgrading the inland routes between the Great Ocean Road and the Princes Highway West, which are vital connections for the tourism and freight industries as well as local communities.

These upgrades will include pavement widening and rebuilding works so roads are stronger and smoother, as well as the construction of retaining walls to reduce the risk of landslips.

More than $17 million will also be invested in priority roads which support the Barwon South West dairy supply chain - including rebuilding, resurfacing and widening roads, strengthening or replacing bridges and planning for future upgrades.

This will allow the routes to carry heavier vehicles, providing more efficient transport from depots, farms and processors.

"The Great Ocean Road is an iconic Victorian attraction which brings millions of visitors to the region each year and is the lifeline for a number of communities along the coast," Mr Carroll said.

"This will deliver stronger, safer and more reliable roads for locals, tourists and the freight industry - it will help to boost the region's economic recovery following the pandemic."

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