The intersection was developed as part of the governments Streamlining Hoddle Street project which aims to use new intersection configurations to improve safety and efficiency along the busy section of road network.
Major Road Projects Victoria said the intersection would reduce delays for drivers travelling north-south by cutting out the 45 per cent of time currently dedicated to right-turning.
A new turning lane has been built that moves right turns away from the intersection prioritising north-south movements and improving travel times for the 330,000 people that use Hoddle Street every day.
P-turns have also been introduced, meaning drivers wanting to turn right will have to go through the intersection before making a u-turn, eliminating the need for right turn green lights.
The Victorian Government said the new intersection would reduce the risk of vehicle crashes and make pedestrian movement easier.
Accessible bus stops on Punt Road and a new accessible tram stop on Swan Street have also been installed.