During the 2007 election campaign, the Howard Government promised $30 million for the project.

The State Government last week announced its funding for the joint project.

Group vice president Ian Sullivan, who is a Sunbury resident, said the interchange would make a big difference to Sunbury residents wanting to shop at Watergardens. The road had always been hazardous.

Group president Russell Mowatt was delighted with the funding news, and said a community meeting would be held in Sydenham on June 11 to discuss the issue.

"Given the recession and other competing groups around the state, it was always going to be a big ask. However, we are over the moon because we finally got a slice of the pie for this region," Mr Mowatt said.

"Since 1993 there have been 11 deaths on that section of the road and up to 500 accidents.

"Up to 55,000 people use that path daily and I've spoken to thousands of people over the last couple of years who were concerned that something serious was going to happen unless something was done."

The group, formed two years ago, has successfully lobbied the State Government and VicRoads for the recent installation of 22 lights at the intersection of Calder Park Drive and Calder Freeway.

Macedon MP Joanne Duncan said the funding would also be used to upgrade Kings Road to four lanes between the new freeway interchange and the Melton Highway. "The Kings Road duplication will cater for the extra drivers expected to directly access the Calder Freeway at the new interchange and will provide a direct link between the Calder Freeway, Melton Highway and Western Highway.

"These latest projects are the first stage of improvements to the Calder Freeway between Keilor and Diggers Rest. This project will reduce congestion at the Sunshine Avenue and Calder Park Drive intersections."

The project includes improvements to the Melton Highway/Kings Road intersection and along Melton Highway near Watergardens Shopping Centre; installation of noise barriers; construction of a new access road to Keilor Public Golf Course at the Kings Road interchange; and the closure of Robertsons Road access to the freeway.