The Blanchard Racing Team Mustang was found to be running an incorrect drop gear in its transaxle at the end of Thursday's running at the Melbourne circuit.
While the illegal ratio was a straight line disadvantage for Hazelwood, the zero tolerance approach to technical breaches means the car has been disqualified from the opening race – in which he finished last.
Hazelwood has also been demoted to rear of grid for today's race, given qualifying took place yesterday, although again he was only set to start second-last anyway.
Hazelwood will effectively be able to start fresh tomorrow when two new qualifying sessions will set the grids for the final two races of the weekend.
Shane van Gisbergen won yesterday's opener after holding off Brodie Kostecki in cool conditions that favoured the super soft tyre.
Van Gisbergen will start this afternoon's race from pole as well ahead of Will Brown, Broc Feeney and Brodie Kostecki.
The race kicks off at 2:55pm local time.
