Home and Away actress Jessica Falkholt and her sister fighting for their lives after Boxing Day car crash that killed both their parents

Home and Away actress Jessica Falkholt, 28, and her sister Annabelle, 21, are fighting for their lives after a horror car crash that killed both their parents on boxing day.

The actress and her 21-year-old sister are in a critical condition after the head-on collision on Boxing Day. Their parents Lars Falkholt, 69, and his wife Vivian, 60, died after the crash on Tuesday at around 10.45am. The actress and her sister were airlifted to hospital, and are now both in a critical condition.

Annabelle remains critical at Liverpool hospital while Jessica is at Saint George Hospital, with family members holding vigils at their bedsides.

Craig Anthony Whitall, 50, from Ulla Dulla who was driving the other car was killed on impact in the accident at the Princes Highway at Mondayong on the New South Wales south coast. Other motorists risked their lives to pull the critically injured sisters from the back of their parents’ car.

After the sisters were pulled free, both cars burst into flames leaving the vehicles completely destroyed. The identities of the Falkholt parents were confirmed through dental records as their remains were burnt in the wreckage as the vehicles were engulfed in flames.

The Falkholt family are known as a close-knit family. They were thought to be driving home to Sydney up the Princes Highway after a short festive break when the accident happened. Extended Falkholt family members immediately raced to be at the bedsides of the young sisters.

"Sadly those family members are travelling to the St George and Liverpool Hospitals to engage with their loved ones who are very much in a critical condition at this time," Highway Patrol Chief Inspector Phil Brooks said.

Jessica appeared as Hope Morrison on Home and Away in 2016. She also starred in the upcoming supernatural thriller Harmony, set to be released in 2018.

Jessica on set filming scenes for Home And Away in 2016

Police said the crash was caused by one car being on the wrong side of the road. A Toyota Prado being driven in the opposite direction is believed to have crossed to the other side of the road and hit them head-on south of Sussex Inlet.