State Infrastructure Minister Michael Ferguson has requested an urgent briefing from his department on the safety of the Midland Highway-Highland Lakes Road intersection, after a crash there resulted in the death of a Bridgewater grandmother on Friday.
The crash follows a number of other incidents at the intersection in the last two years.
Crash investigators are currently working to determine the causes of the latest crash and a report is being prepared for the coroner.
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A 67-year-old woman was driving south in a Toyota Corolla sedan at about 11am on Friday when a northbound Mazda BT-50 was unable to avoid colliding with the front of her vehicle as she turned from Highland Lakes Road onto the Midland Highway.
Police say the woman was trapped in her vehicle "for some time" and was eventually pulled from the car but died at the scene.
The deceased woman's 11-year-old granddaughter was taken to hospital but didn't sustain any serious injuries.
On Saturday evening, Mr Ferguson said he had asked the State Growth Department to conduct an immediate review of the intersection's design features, including signage and speed limits.
The review will involve consultation with the Southern Midlands and Central Highlands councils.
"Yesterday's tragic crash, which has resulted in a death and a serious injury, is rightly a concern to the Tasmanian community and we owe it to road-users to closely review the design and speed limits at this intersection," he said in a statement.
"Further, I have requested the urgent consideration by the independent Commissioner for Transport of a reduction in the speed limit on the Midland Highway in the vicinity of this site while the review is undertaken.
"Like all Tasmanians, my thoughts and personal prayers today are for the families and friends of the deceased woman and the child who was seriously injured."
Tasmania Police inspector Darren Hopkins said police would examine all potential factors that may have contributed to the crash, including the road surface, speed of the vehicles involved, the curvature and width of the road and signage.
"Everything is taken into consideration," he said.