New project details show the road will be upgraded from two to four lanes between Stoney Camp Road and Chambers Flat Road.
The project will also deliver safety improvements and construction of a new north-bound bridge over Norris Creek.
Minister for Population, Cities and Urban Infrastructure Alan Tudge said the additional funding meant the project would deliver a significant benefit for local motorists.
“This is a targeted infrastructure investment to ease congestion along this critical south-east Queensland arterial,” Tudge said.
Assistant Minister for Road Safety and Freight Transport and Federal Member for Wright Scott Buchholz said the Federal Government was delivering a more reliable road network for commuters and freight by addressing local bottlenecks.
“Residents in rapidly growing communities such as Jimboomba, Cedar Grove, Beaudesert and down to Rathdowney are connected to Brisbane in the north and the New South Wales border at the southern end, by this important road link,” Buchholz said.
The Mount Lindesay Highway was recently designated by the Federal Government on the National Land Transport Network.
Funding for this project is equally split between the Federal and Queensland Governments.
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