The Finke Desert Race in Alice Springs will go ahead following days of uncertainty over whether it would receive the necessary permit after a spectator died in 2021.
Nigel Harris, 60, died when a competing vehicle veered off-track and into a group of people standing at a popular vantage point 35 kilometres from the finish line.
At a coronial inquest into Mr Harris’s death earlier this month, Australia's national motorsport peak body said it had failed to do enough to keep spectators safe.
The inquest heard that both Motorsport Australia (MSA) and the Finke committee had been aware of the "extreme" danger posed to spectators for years, but did "little to nothing" to mitigate the risks.
Recommendations from several safety reports, written in the years leading up to the fatal incident, were also not acted on by the Finke committee or MSA, the inquest heard.
Following its conclusion, and just weeks out from the 2023 event, race organisers revealed they were still in discussions with MSA and the Northern Territory government, and were yet to receive a permit for the car section of the race to proceed.
In a statement on Wednesday confirming the permit had been issued, event organisers said new safety measures would be in place, including requiring spectators to be at least 30 metres away from the track and banning spectators from "high-risk" corners.
Marshals monitoring spectator safety will also be stationed along the track.
Elements of safety plan missing at 2022 event
At last year's event, a number of measures were introduced to improve safety, including roving spectator marshals, "no-go zones" and requiring spectators to keep at least 20 metres from the track at all times.
But the inquest into Mr Harris’s death heard that last year elements of the recommended spectator safety plan were absent, including designated spectator zones.
Bruce Muir, who has competed in the event 33 times, said the safety changes were necessary to keep the race going.
He said it was great to see the permit approved.
"Everyone has been really on tenterhooks waiting and hoping it's going to go ahead … and to finally be given the green light, everyone is pumped," Mr Muir said.
Tourism Central Australia's Daniel Rochford said the event had a significant economic impact on the region.
"I've seen reports that Finke provides up to $10 million in economic benefit to Central Australia," Mr Rochford said.
He said despite the last-minute uncertainty, he was not aware of many ticket holders cancelling their trips.
The event is scheduled for June 9 to 12.