Burnouts in the middle of the town Cowes on Phillip Island on a party-pumping Saturday night at MotoGP time is part and parcel of the event. All done in good spirit and the cops know it and tend to let it slide. Static burnouts are tolerated, to a point; rolling burnouts are not, due to being more risky/dangerous. The street is closed off to general traffic anyway, and only bikes permitted.
I don't support hoon behaviour on the road, but a nice burnout at the right place/right time doesn't hurt no one.