The squad has acquired the two cars that contested the first five rounds of the new two litre touring car series this season and is currently rebuilding the cars.
Since purchasing the cars, built by Italian-based team Top Run Motorsport, Kelly Racing has been plagued by mechanical issues which resulted in the entries, initially driven by Andre Heimgartner and Molly Taylor, being sidelined by the squad.
Milldun Motorsport, based in Pakenham, Victoria, has taken delivery of the two cars and will make its debut in the carsales TCR Australia Series at the final round at The Bend Motorsport Park, South Australia (November 15-17).
The squad has an extensive history with rally cars which are not too dissimilar to the Subaru TCR machines.
It is also heavily involved in other racing categories such as sports cars, sports sedans, historic racing and recently entered Barton Mawer in the S5000 category at Sandown.
“It's really exciting to be involved in the TCR Australia Series,” said team owner Liam Dunn.
“There is a lot of potential in the Subarus and we are really looking forward to the challenge.
“The success that the category has had in its first year has been huge, and its something that we definitely want to be a part of.
“We've gone over the cars and, fundamentally, they are quite good. There is a lot of potential there and I can't see that there's any reason why they won't be as quick as some of the other cars in the category.”
The squad is expected to reveal its driver line-up in the coming weeks.
Meanwhile, Kelly Racing will continue to run its pair of Opel Astras at The Bend although a decision regarding its 2020 involvement is yet to be made.