The Aruba.it Racing – Ducati Superbike Team rider crashed in the opening minutes of Monday's afternoon session.
The crash occurred as the Italian highsided turn 11 of the Phillip Island circuit. the MCG Corner.
"Having taken a blow to the lumbar region of his back, the doctors at the medical centre decided to transfer him to Alfred Hospital in Melbourne to carry out a CAT scan," Giugliano's team said in a statement.
"Unfortunately the scan has revealed two small fractures of the L1 and L2 vertebrae, not serious but which may prevent Davide from competing this coming weekend. Tomorrow (Tuesday) a specialist at Alfred Hospital will see Giugliano to make a decision and determine the length of the Italian rider’s recovery period."
Speaking later in the day the 25-year-old admitted that his participation in the weekend's race was hanging by a thread.
"I’m very upset about this afternoon's crash because things had been going very well. I had good feeling with the bike by the end of session one and I was able to lap with consistently fast times," he said.
"It was a bad fall and this evening's CAT has unfortunately revealed two tiny fractures, so I’m really worried that this might compromise my first races of the 2015 season."