The Australian Government has unveiled the designs of a new interchange that is to be built between the Calder and Calder Alternate highways.

The government noted that the new design will make the intersection safer by constructing a large circulating road above the Calder Highway that will carry traffic over both the northbound and southbound lanes of the Calder Highway.

Calder Highway is the primary road transport route connecting regions, cities and towns in Northern and North-Western Victoria and south-west New South Wales to Melbourne.

" The design will help eliminate the stop-start movements motorists currently experience, which will improve productivity and reduce operating costs."

A total of seven crashes and a number of serious injuries have occurred at this intersection in the five years to 30 June 2012.

Deputy prime minister Warren Truss said both highways have experienced significant traffic growth over the last decade, with the Calder Highway alone carrying 13,000 vehicles a day.

"Melbourne-bound traffic from the Calder Alternate Highway currently needs to stop numerous times at this intersection, which imposes considerable costs and inconvenience to motorists. This is why the government is investing in the upgrade of this vital transport corridor.

"The design will help eliminate the stop-start movements motorists currently experience, which will improve productivity and reduce operating costs.

The project is estimated to require an investment of $86m, out of which Australian Federal Government will contribute $45m while the government of Victoria will contribute $41m.

Planning for the project is currently in progress while the construction is expected to start in 2015 and be completed in 2018.