It is an offence for a person to start or drive a vehicle in a way that causes unnecessary noise & smoke in Victoria. This is in accordance with regulation 291 of the Road Safety Road Rules 2017.
 

The Rules also provide an example:
 

Causing the wheels of the driver’s vehicle to lose traction and spin on the road surface may make unnecessary noise or smoke.
 

Often this offence arises from people doing burnouts, speed trials or purposely driving in a manner that would cause loss of traction, however sometimes it may be by accident and you may have a defence.

The Penalty

The penalty for creating unnecessary noise or smoke is 2 penalty units.
 

In some circumstances however, you may also be charged by police under a provision of the Road Safety Act. This could be for careless driving or improper use of motor vehicle. These charges carry greater penalties including loss of licence. You should speak with an expert traffic lawyer about the possibility of withdrawing other charges.