Of nine races this season, McLaughlin has now won seven, lengthening his lead at the top of the championship standings ahead of teammate Fabian Coulthard, who was second on Saturday.

With the superior pace of the Mustang under him, McLaughlin was unstoppable at his favourite track on the circuit.

The 25-year-old earned his seventh win since 2014 on the Island, coming after his seventh-straight pole position.

Andre Heimgartner won a first podium of the season for Nissan, with David Reynolds the first Commodore home in fourth.

The race's decisive moment came off the grid, when McLaughlin and Coulthard duelled to hit the first corner in front.

The Mustangs went door-to-door before Coulthard finally yielded, handing the contest to his teammate.

"The race off the line was epic," McLaughlin said.

"If anyone needs to know how much respect we have for each other, there it was right there.

"We were so equal ... he didn't want to back out, I didn't want to back out either.

"It's great for the team, one-two. We controlled the race from the start.

"It's awesome to get a win here again, I love this place."

Both DJR Team Penske cars set new race lap records, with Coulthard's second place keeping him second in the championship.

"The young bloke is a wizard around here," Coulthard said of his teammate.

Further down the field, there was plenty of pain.

Cam Waters and Jamie Whincup were forced into retirement while James Courtney and Tim Slade survived tyre blow-ups.

Waters was sparring with Rick Kelly and Shane van Gisbergen before his duel with the Red Bull man ended his race with five laps remaining.

"We just hit wheels awkwardly ... it just tore the wheel out of my car. I'm absolutely gutted mate. Shit happens," he said.

Whincup, who qualified well back in 17th, fell victim to a pit lane bungle.

The seven-time champ took off without his front right wheel secured and only lasted a few corners before it flew off to end his day.

"There's not much more I can add ... we were poor," he said.

He was also served a $500 fine for speeding in pit lane and will face an investigation into the loss of his tyre, given the safety hazard.

The DJR Team Penskes will also be investigated for a line locker infringement during their pit stops, likely to hit their team points standings as well as their hip pockets - but not the race results.

Australian Associated Press