There were three teenage boys in the car, but one of the passengers was found dead at the scene.
He is yet to be identified.
Paramedics treated the driver and another passenger at the scene before they were airlifted to John Hunter Hospital in Newcastle in a critical but stable condition.
Police have established a crime scene, and are awaiting arrival from specialist police from the Crash Investigation Unit.
Anyone with information about the crash or was in the area at the time with any available dashcam and mobile phone footage are urged to contact Taree Police Station or Crime Stoppers on 1800 333 000.