Sean Edwards was a passenger in a Porsche when it reportedly hit the barriers at Queensland Raceway, near Brisbane, Australia, during a private test session.
The driver, a 20-year-old man from Brisbane, was pulled from the burning wreckage and is in intensive care with life-threatening injuries.
Edwards, 26, the son of Guy Edwards, the British former Formula 1 driver, was born in London but was living in Monaco. He was the 2013 Porsche supercup championship leader.
The Motor Sports Association (MSA) said it was shocked and saddened by the loss of Sean Edwards. It added: “Sean was a hugely promising young racer who came through the junior formulas in Britain.”