The facility, which was opened on Friday by minister for regional transport and roads Paul Toole and Centre for Road Safety executive director Bernard Carlon, will test state-of-the-art technology, including driverless cars, autonomous braking and communication between vehicles and traffic controls.

However, the biggest safety boost to Australian cars will be having the testing in Australian conditions, with vehicles currently sent to Europe to have their safety rating assessed.

"I think the beauty of having it out here in the country under Australian conditions ... in the country we have things like kangaroos that are going to jump out in the way," Mr Toole said.

"It's not just pedestrians but there are other factors to consider and we can test them out here and this is going to make them safer into the future.

"Some vehicles already have technology which can assist them staying in the lanes on our roads but more importantly we're going to continue to see technology being rolled out and we'll continue to see technology be tested and we need a place for that."

Mr Carlon said the move to open a five star safety facility was "fantastic for road safety".

"It means we can accelerate road safety technology in our cars in here in Australia and save lives and in particular in the regional areas, where we have 70 per cent of our local crashes," he said.

"We've already spent $1.8 million investing in the technology and upgrading of the facility and will continue to invest in it over time as we have new opportunities to do testing for things in the transport network."

Examples of tests conducted on Friday, which mirror testing done at the site, included testing the brakes on a driverless car as an inflatable test dummy 'walked' across the road, and two driverless cars avoiding a rear-end collision.

Long-term, Mr Carlon said there was no reason more construction couldn't be done to house more vehicles and for more technology to be assembled and tested in Cudal.

"It's fantastic news we can create a world-class facility out here in Cudal and we should be able to attract vehicle manufacturers in the Asian market to do these tests," he said.