The family of a driver involved in a fatal crash that claimed the life of an 11-year-old Melbourne schoolboy are all "in shock, wishing this was just a bad dream".

Grade five student Jack Davey died in Tuesday's crash while two 11-year-old girls, a 10-year-old girl and a 10-year-old boy were seriously injured and taken to hospital.

The driver, a 40-year-old Hawthorn East mother, was arrested and released following a police interview, with no charges laid.

She had just collected her child from the Auburn South Primary School in Melbourne's east and attempted a U-turn when her car crashed through a fence.

In a statement released by Victorian Police, the woman's family said they remain deeply affected by the tragic incident.

(The car involved in the incident crashed through a fence at the Auburn South Primary School. (Joel Carrett/AAP PHOTOS)

"We are all in shock, wishing this was just a bad dream, but sadly this is our reality," they said.

"To Jack's family, we can only offer our heartfelt condolences; our hearts go out to you and to every family affected by this loss. 

"To those injured, may you heal quickly – God bless you all."

The driver's family said they felt the Davey family's grief.

"It's not about the words we say but the genuine sorrow held within our hearts," the statement said. 

"May God watch over everyone and provide strength and comfort to those who are suffering."

They thanked the school staff and emergency workers who responded to the incident.

"We have assisted with the investigation and please ask for privacy while we come to terms with such an overwhelming tragedy," the family said.

A fundraiser for the Davey family had grown to more than $241,000 late on Friday.

By Aaron Bunch in Perth