Pratibha Sharma, her husband Jatin Chugh, and her daughter Anvis were sitting at the Royal Hotel in Daylesford when a white BMW SUV crashed into outdoor tables about 6pm on Sunday.
Sharma and Chugh died at the scene. Nine-year-old Anvis was flown to hospital but did not survive her injuries.
The other two victims were a 38-year-old man and his 11-year-old son, Victoria Police said this afternoon.
That man’s wife, a 36-year-old woman, and a second son, aged six, were both injured in the crash.
The six-year-old was initially in a critical condition with broken legs and internal injuries but has since stabilised.
Another group, which included an 11-month-old baby boy, was also injured. The child’s mother was not hurt, however another two people with them were hospitalised.
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Victoria Police Chief Commissioner Shane Patton said it’s believed that none of those killed were locals, but were all tourists visiting the popular town.
The driver of the BMW, a 66-year-old man, was taken to hospital and treated for shock and minor injuries.
He is not believed to have been under the influence of drugs or alcohol, and police will investigate whether he suffered a medical episode at the wheel.
The driver has not yet been interviewed by police.
A community vigil was held at Victoria Park tonight.