Boom gates will be installed at Raglan St and Maffra-Sale Rd, Sale and at Bundalaguah Rd, Montgomery.

Flashing lights will be put in place at Friends Rd, Rosedale and Settlement Rd, Kilmany.

Transport Minister Anthony Albanese said about 100 accidents occurred at rail crossings every year.

''Last year alone there were 28 collisions at level crossings in Victoria, nine resulting in fatalities and five involving serious injuries,'' he said.

''The investment we are making will not only improve road safety but also support local jobs and local businesses during the current global recession.''

The projects were identified by the State Government using a model which took into account factors such as road and rail traffic volumes; crash history; visibility for motorists and train drivers; the number of rail tracks at the crossing; and other public risk factors.