|Former Home and Away actress Jessica Falkholt is fighting for her life in hospital after the devastating crash|
Jessica and Annabelle were then airlifted to hospital, both in a critical condition, according to 9 News.
Their car was reportedly involved in a head-on collision after another driver crossed over to their side of the road.
A fire then 'incinerated' both cars before the sisters were pulled free by other motorists.
The sisters were injured in a horrific Boxing Day crash which killed their parents, Lars Falkholt, 69, and Vivian, 60. They were identified with dental records after being burned in the aftermath of the crash.
Police said the crash was caused by one car being on the wrong side of the road. It is believed to be a Toyota Prado driven by Craig Anthony Whitall, 50, who also died at the scene
The bodies of the parents were only identified thanks to dental records because they were so badly burned, SBS reports.
Police have also explained that they are investigating the behaviour of the driver of the other car, Craig Anthony Whitall.
The paper also reported that a Toyota Prado driving in the opposite direction - thought to be Whitall's - crossed over the road and hit them head-on just south of the Sussex Inlet.
Darrin Collier saw the crash from his car and helped emergency services free the women.
He told The Australian he was still shaken by the accident.
'The injuries on the two girls will be something I won't forget in a long time,' he said.
Witnesses and police pulled the two women from the wreckage as the vehicles were engulfed in flames.
Jessica appeared as Hope Morrison on Home and Away in 2016, and also on Underbelly: Badness and in stage plays.
She also starred in the supernatural thriller Harmony, set to be released in 2018.
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