Subsequent scans have uncovered a traumatic fracture near where the collarbone meets the shoulder.
Hazelwood also has torn shoulder and neck ligaments and sported a sling until Monday, when he spent an hour on a simulator.
The 2017 Dunlop Super2 Series winner is confident rest and treatment will be enough to get through the Queensland Raceway event.
"I probably did more damage when I pushed and popped the shoulder back in during the race," Hazelwood told Supercars.com.
"It's done a fair bit of damage and tore ligaments in my neck and around the back of my shoulder. That's probably why I had a fair bit of pain in the Sunday race.
"We've had lots of physio, my physio Anouska [Edwards] is doing a lot of rehab work, and trying to rest it as much as I can while trying to get ready.
"Yesterday was the first day I really put it under serious load, took it out of the sling and went on the simulator at McElrea Racing and it felt not too bad.
"It was a little bit sore as I haven't used the shoulder or done any physical work since Townsville, but nothing I can't manage.
"Obviously a dislocated shoulder's not going to heal completely in a week-and-a-half, but I've been trying to give it as much rest as we can before I put it through a pretty big workload this weekend racing.
"Fortunately there's not too many tight left-handers, so hopefully I won't be in too much pain."
Making some good progress with my shoulder in preparation for this weekend. Special thanks to Anouska Edwards for all her amazing help and @McElreaRacing for letting me get back in shape today on their Motion Force1 Simulator. Feeling strong and can’t wait to go racing ?? #VASCpic.twitter.com/4Dgt4k17oO