hobby, sharetrading or investor?

I thought I'd ask the experts on this forum their advice on my friends situation.

He is on newstart allowance due to health reasons but does work part-time and decided to use most of his savings to dabble in the stock market.
He sees it as a hobby though he buys and sells regularly. He doesn't have a specific amount of capital to invest, he jumps from one trading platform to another (to avoid brokerage), no strategies, no trading equipment. He just buys based on forums and what he reads about the company himself in his spare time.

He also doesn't report any money made or losses to centrelink because it's just a 'hobby'.

I just wanted other people's views as I fear he might be a share trader without knowing it and could be in deep doo doo with the ATO and Centrelink if he doesn't report.

Thoughts?