The speed limit will reduce from 110 kilometres per hour to 80 kilometres 850 metres south of Blackbutt Road for vehicles travelling out of Dubbo.

In January 2015 husband and wife Noel and June Clifton were killed on the road when their car collided with a truck.

NSW Roads, Maritime and Freight Minister Duncan Gay made the announcement on Friday, as well as $3 million to improve the intersection. The upgrade includes wider turning lanes, a merging lane for cars turning left as well as improving the road shoulders.

“We wished it was there earlier but at the very least this tragedy should not go unheeded without changes put in place to the speed limit. We think they’re sensible and important changes to the Newell Highway,” Mr Gay said.

The government tried to anticipate the spots were funding needed to be spent to improve safety, he said.

“Whenever there’s a fatality you always wish if you were in my job that we made a change before it happened, sometimes you don’t get to do that. But the key is to not have addressed it after this tragedy would have just been unacceptable.”

Daughter of the Cliftons, Sheri Dunn said it was a long time coming, but she was happy to see the speed limit finally reduced.

“It’s nice for our family to know hopefully this will never happen again,” she said.

It was an emotional moment for Ms Dunn as she helped reveal the new 80 kilometre sign for the highway.

She said there had been a lot of close calls since her mum and dad had died, and Dubbo MP Troy Grant had stuck with her calls for the limit to be reduced.

Mr Grant said the upgrade was vital to cater for the increase in traffic volumes as a result of more people moving to Kintyre.

The work on the intersection will start this month, Mr Gay said, and should be finished by March.

“Dubbo’s growth is an ongoing problem, but a very nice problem, for planners,” he said.

The speed limit for traffic heading towards Dubbo will remain at 100.