Driver John McRae, 66, of Smythes Creek, and passenger Wallace Anderson, 71, of Wendouree, were killed in the collision.

The men were in a white 2002 Toyota Rodeo which was involved in a collision with a black 1999 Toyota Landcruiser on the Glenelg Hwy.

The crash occurred at the intersection of the Glenelg Hwy and they Streatham-Carngham Rd shortly before 2pm on Thursday.

Three people and a dog in the Landcruiser survived the collision.

The survivors are understood to be a young Ross Creek family. All have now returned home.

They were taken to the Ballarat Health Services Base Hospital in stable conditions.

The male, in his 30s, was airlifted to the hospital with head, chest and leg injuries.

He was admitted and stayed overnight and was discharged yesterday.

A female and an 18-month-old girl suffered minor injuries and were released on Thursday night.

The family was heading toward Ballarat with a caravan and dinghy when the crash occurred. The caravan travelled a further 100m down the road while the cars came to a stop in a paddock near the intersection.

Police have spoken to the survivors about the incident and have statements from four independent witnesses.

Police are now preparing a report for the coroner.

The incident is the second fatal car crash in the Ballarat region this year.

Smythesdale man Keene Battistello died in a single-car accident at Scarsdale on Monday, January 10.

The Victorian road toll stands at 57 compared with 52 at the same time last year.

Goldfields Police Traffic Management Unit Sergeant Don Frazer said he wanted all drivers to take care on the roads as the Easter holidays approached.