Harvey had been trying to work his way past the Toyota Supra of Frougas for several laps before the pair came to blows just over 10 minutes into Race 2.
The Mustang tagged the back of the Supra exiting Turn 5, an area of the track known as Siberia, and the pair ran side-by-side to the fast sweeper at Hay Shed.
Frougas tagged the right rear of the Mustang, which sent it spinning off the road at high speed and heavily into the tyre wall.
Harvey exited the heavily damaged Mustang under his own power, while Frougas continued to circulate in second position behind race leader Aaron Cameron before the Safety Car was called out.
Frougas was handed a drive-through penalty for his involvement in the incident.
“He said over the radio he’s okay but I’m pretty sure he got out pretty quickly,” said Harvey’s co-driver Cameron McLeod.
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“He was doing a great job up there. Very gutted.
“He did such a good job to get from seventh to third, and I knew we had the front [tyre] pressures a bit lower, so I knew the car would come to him.
“I wasn’t too stressed about him getting caught up.
“The car was just getting there and he’s just got turned. Not ideal. Nothing we can do about it.
“The team at Multispares will do their best job to get it out for the next round. It was a brand new car.”
The Mustang of Harvey and Cameron McLeod was at the centre of a controversial penalty call in Saturday’s Race 1.
A pre-race weight addition was not able to be completed safely by the team as the car’s weight box was reported to be full.
Harvey crossed the line first, but a 10 second penalty saw the pair relegated to second position.
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