Ocean Reef MLA Albert Jacob said the project would create about 120 jobs and have flow-on benefits to suppliers of goods and services.
The 6km extension would have two lanes in each direction, with the capacity to add a third lane later.
"The northern suburbs community, particularly residents in Kinross, Burns Beach, Mindarie and Clarkson will benefit from reduced travel times, decreased pressure on local roads and increased development in the area," he said.Works will include the extension of Neerabup Road east from Connolly Drive to Wanneroo Road, duplication of Hester Avenue, and construction of shared paths, pedestrian underpasses and bridges at Burns Beach Road, Neerabup Road and Hester Avenue.
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READ NOWDesign work will start this month and construction is expected to start in June. It is due for completion by mid-2017.