Officers have impounded a car allegedly used to perform burnouts in front of the Wodonga Police Station.
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Two people in cars behind the vehicle have also received two penalty notices following the incident on February 7.
Footage of the incident shows the blue utility perform two loops outside the police station about 7.50pm on the day of the incident, with skidding tyres emitting plumes of grey smoke.
Two cars could be seen behind the blue utility and people in the cars appeared to be filming.
Senior Sergeant Shane Martin said the vehicle had now been impounded for 28 days.
He said the car had been taken from the owner at the weekend.
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The owner will have to pay for the impound.
The 22-year-old driver will face court on summons charged with driving offences.