The intersection work at the Warrnambool beach cutting roundabout will improve conditions and visibility for motorists, pedestrians and cyclists, according to a Warrnambool City Council spokesman.

The $340,000 black spot project funding includes:

The spokesman said that from 2014 to 2018 there were seven accidents recorded at the intersection.

Senior Sergeant Martin Flannery, of the Warrnambool police highway patrol unit, said the upgrade was timely and welcome.

"That's wonderful. We're happy with upgrades to any of our roads, especially when those works are linked to bike rider and pedestrians safety," he said.

"In the last 12 months there was a 50 per cent increase in the number of cyclists injured on the roads in this region and pedestrian statistics are just static.

"This is one of the busiest intersections in Warrnambool and improvements are very welcome."

Earlier: Funding of more than $300,000 has been announced for remedial works at the busy Warrnambool beach cutting intersection of Banyan Street/Merri Street and Pertobe Road.

Residents of Warrnambool and Mount Mercer, east of Cape Clear, on Tuesday received a significant road safety boost with the federal government announcing it will invest $1.4 million towards two projects under the 2020-21 Black Spot Program.

Member for Wannon and federal Education Minister, Dan Tehan, said community input was critical to identifying black spots in the electorate.

"Road crashes place major emotional and economic strains on all affected communities but particularly the families and friends of the victims," he said.

The cutting roundabout work will cost $340,000 and include reconstructing the roundabout with a larger relocated central island, improved deflections, raised pavement, bike sharrows, approach islands with refuges and new street lighting.

The $1.1 million works at Mount Mercer will construct sealed shoulders to 1.5m from Grahams Road to Rices Road, including tactile edge line and raised reflective pavement markers.

There will also be the installation of a barrier with rub rail through the deviation on the east side.

"I am pleased to see that projects at Shelford-Mount Mercer Road, north of Grahams Road at Mount Mercer and the intersection of Merri Street and Banyan Street and Pertobe Road, at Warrnambool, will be delivered under the 2020-21 funding round," Mr Tehan said.

"Motorists living within in and visiting Wannon will be pleased to know the two notorious black spots in the electorate will be fixed with funding from the program.

"None of these projects would be delivered without the community's vital input, and I encourage all residents and motorists in the region to nominate projects for future funding rounds."

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the state would receive $38.7 million under the program's 2020-21 funding round.

"This major investment is part of the Australian Government's commitment to building safer roads right across the nation," he said.

"The high-priority locations we are funding have seen a total of nine fatal crashes and a further 521 causing injuries recorded over the past five years."

Assistant Minister for Road Safety and Freight Transport Scott Buchholz said the 92 Black Spot projects across Victoria would make a significant contribution towards reducing serious injuries and deaths on Victorian roads and built on previous investments in the state.

"Our Liberal and Nationals Government has invested the funding needed to deliver 535 projects across Victoria," he said.

"Regional Victorians have been the primary beneficiaries of this program, as we have placed a heavy focus on addressing the number of crashes causing death and injury in regional areas.

"This new funding will see the total investment through the Black Spot program in Victoria rise to $237.4 million, demonstrating our ongoing commitment to improving road safety."

For more information on the Australian Government's Black Spot Program, or to nominate a black spot, visit http://investment.infrastructure.gov.au/funding/blackspots.

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