A male backseat passenger was cut free from the wreckage and airlifted to hospital with life-threatening injuries.
Another two male passengers were taken by ambulance to a local hospital – one with serious injuries and one with minor injuries.
It’s alleged the driver fled the scene and was arrested at a Newborough address several hours later.
The 18-year-old was taken to hospital where he remains under police guard.
McGraths Track is expected to be closed until about 9am with investigators examine the crash scene.
Major Collision Investigation Unit detectives are investigating the circumstances surrounding the crash.
Any witnesses, anyone with dash cam or anyone with information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at www.crimestoppersvic.com.au