The McCrae lighthouse, was built in England in 1874 by Chance Brothers & Co of Birmingham, was transported to Australia by sea and erected on this site in 1883.
The structure, which is listed on Victoria's Historic Buildings Register, is one of two such types remaining in Australia and at 33.5 metres is the tallest building in Port Phillip Bay.
The lighthouse comprises of a central circular column, housing a 120 step spiral staircase which ascends to the lantern housing. The central column is 1.5 metres in diameter and is constructed of riveted steel plate. The small brick portico at the base of the lighthouse has been added in more recent times.
The lantern housing located 30.8 metres above sea level is constructed of steel and timber and is protected by a glass surround and a lead dome roof. A narrow steel balcony surrounds the lantern housing.