Motorsport Australia confirmed this morning that an incident had occurred at the event and that the race had been stopped while recovery crews attended the scene.
Two hours later it was announced that the race had been abandoned, before confirmation from the governing body this afternoon that two people were killed.
"Motorsport Australia confirms that a double fatality occurred on Sunday 4 September 2022, during the second day of the Rainbow Desert Enduro in Victoria," read a statement.
"Motorsport Australia extends its condolences to the family and friends of the deceased.
"Motorsport Australia is currently providing support to event organisers and those at the event, with Victoria Police currently in attendance at the scene.
"As these investigations remain ongoing, Motorsport Australia is not able to provide any further comment or detail at this time."
A statement from Victoria Police explained that the car had hit a tree and caught fire.
"Emergency services have attended a fatal crash in Rainbow that has left two people deceased," read the statement.
"It’s believed a vehicle involved in an organised car race has left a track off Fuller Road just after 9am, struck a tree and caught fire.
"The driver and passenger, both yet to be formally identified, have died at the scene.
"The exact circumstances surrounding the incident are being investigated.
"Police will prepare a report for the coroner."