Following 29 crashes and one fatality on the road over the past four years, the upgrades will ensure the area is safer for all road users.
The $12.6 million project will replace the existing roundabout with a set of traffic lights, with work expected to begin in the middle of the year and taking 12 months to complete.
“This package of works will make this intersection, which provides access to the Lavarack Barracks, the Annandale Shopping Centre and a number of local schools, safer for the more than 40,000 vehicles that pass through it every day,” Minister for Infrastructure and Transport Anthony Albanese said.
“It will also deliver similar safety benefits for local pedestrians and cyclists.”
Funding for the upgrade will be provided by the federal government under the Bruce Highway Safety Package, which aims to eliminate notorious black spots, install rest stops and build additional overtaking lanes on the highway.
In total, $3.3 billion will be spent on Bruce Highway upgrades and improvements.