Partly. While it takes some cues from true events, there's a fair amount of creative fictionalization to make it more dramatic and engaging for the viewers.
Wolf Creek 2 is indeed based on a real story. The real - life Australian outback has had incidents of people going missing and being the victims of violent crimes. The movie uses these general ideas as a basis. It aims to create a sense of horror and unease by showing the vulnerability of people in such a vast and unforgiving landscape. It also plays on the fear of encountering a deranged killer like the one depicted in the movie, which is based on the idea of real - life criminals who have operated in the area.