The jointly funded project was in response to a proposal from the Huon Valley Council and community consultation showed widespread support among people in the region.
The Tasmanian Government has committed $16 million and the Australian Government $13.2 million to the new link, with Tasmanian civil contractor Andrew Walter Constructions being awarded the contract.
The route was established following consultation with the community and key stakeholders in 2021 and 2022.
The new road starts near the junction of Orchard Avenue and the Huon Highway and connects with Flood Road near the corner of Sale Street.
Roundabouts will be constructed at the Orchard Avenue and Huon Highway junction, and at the intersection with Sale Street and Knights Road.
The Huon Link Road will open to traffic in early 2025, once construction of the entire project, including upgrading Flood Road, is finished.
Comments attributable to Federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King:
"The Huon Link Road will provide an easier connection between the Huon Highway and Channel Highway.
"The new link road will reduce traffic in the Huonville town centre, making it easier to access businesses and services in the town and improving safety for both vehicles and pedestrians."
Comments attributable to Tasmanian Infrastructure and Transport Minister Michael Ferguson:
"The Tasmanian Government is continuing to deliver transport infrastructure that makes moving around Tasmania more efficient and safer.
"This new link road will mean a quicker and more direct route for those not intending to stop in the town.
"Importantly, this bypass will address community concerns about the increasing amount of traffic in Huonville.
"A less congested town centre will create a safer and more relaxed environment that encourages people to visit and that, in turn, will be good news for local businesses.
"This is the latest example of how the government works with communities and local government to deliver the infrastructure they need."
Quotes attributable to Federal Assistant Minister for Infrastructure and Transport and Senator for Tasmania Carol Brown:
"The new link road will provide a more efficient route for traffic connecting between the Huon and Channel highways."
"This vital project will improve traffic flow and enhance pedestrian safety in the Huonville town centre and provide traffic a reliable alternative route when part of the Channel Highway is flooded."
Quotes attributable to Federal Member for Franklin Julie Collins:
"I was proud to previously commit to this project back in 2013 and its great see works finally getting underway.
"The Albanese Government is proud to be jointly funding this vital bypass project for Huonville, which will make a real difference for the community and road users.
"This project is just the latest example of our road infrastructure investment across Tasmania improving road safety, better connecting freight and communities, and delivering a more reliable transport network."