The 46-year-old woman trapped inside the BMW’s front passenger seat died at the scene.
The damage to the sedan was so significant that she could not be freed from the wreckage.
The 54-year-old driver only received minor injuries and was taken to hospital for treatment and mandatory testing, along with the driver of the bus.
There were no passengers on the bus at the time.
Damange to the road and power lines caused by the crash forced an extended closure of Argyle Street between O’Connel and Pitt Streets as utility company workers conducted emergency repairs.
The BMW driver has since been charged with dangerous driving and negligent driving, both occasioning death, and driving through a red traffic light.
He has had his driver’s licence suspended and been granted conditional bail.
The 54-year-old is expected to appear appear in Parramatta Local Court to face the charges on Wednesday, June 9.
Police are appealing for anyone who witnessed the crash, or who has dashcam vision, to contact police via Crime Stoppers on 1800 333 000.