Yes, he did both, so the starter had two reasons to kick him out. If he was racing someone else, then I have no problem with the decision, but all he had to do was stage and he progresses to the next round. Instead of taking the easy way out, he gave it his all, no matter what. He loves his burn outs (as did the crowd) and also drives the car hard all the time, always putting on a show for crowd - this is one of the facets that attracts people to such events.
Hopefully the event is a step towards a bigger and better Sport Compact future in Australia.