A black Mercedes was travelling on Mickleham Road in Attwood, Melbourne last night when it collided with a red sedan.
The female passenger in the red sedan died at the scene while the female driver died en route to the hospital.
Police believe the daughter of one of the women was following them in another car and watched the crash unfold, ABC reports.
“Our understanding is that family members of the deceased passengers from that little Toyota were following her car very close behind and have witnessed the death of their mother,” Detective Sergeant Mark Amos told 9News.
“[It was] a tragedy I can’t get my head around.
“I don’t know how they are going to cope with seeing that event unfold right before their eyes … it’s something that I am sure will be burnt in their memory.”
Anyone with information is urged to contact Crime Stoppers on 1800 333 000.