Paddon and co-driver John Kennard were not injured in the incident.
The stage was cancelled by rally organisers.
A second stage was scheduled for this morning's first day of the season-opening event.
It is the worst possible start to the new season for the World Rally Championship, which ushered in a new spec of cars and welcomed Citroen and Toyota back into the championship this year.
Four-time world champion Sebastien Ogier and Paddon's Hyundai teammate Thierry Neuville had already completed the stage when Paddon had his accident.