Ahmed Al Ahmed, 44, had been accused of putting his father in a headlock on March 9 and intimidation over an alleged incident in June.
Mr Al Ahmed always maintained his innocence before prosecutors confirmed on Wednesday they had withdrawn both charges.
Speaking to reporters outside Bankstown Local Court, Mr Al Ahmed thanked his lawyer and said he was still dealing with the aftermath of being shot in the arm multiple times during the attack.
"I'm still suffering from the pain ... so I'm still in treatment, physiotherapy," he said.
"I still have a good team of doctors who look after me."
An apprehended domestic violence order protecting his father will remain in place for 12 months.
His lawyer said the last few weeks were very stressful for the Bondi hero.
"It's a great outcome for all," Mohamad Sakr said.
"His innocence is continued, his dignity is preserved and we look forward to what Mr Al Ahmed has next."
When the charges were laid, Mr Al Ahmed alleged members of his family were seeking a cut of the $2.5 million raised on his behalf after he garnered international attention for his actions during the massacre.
"This situation is untrue, it's extortion ... and my two brothers have been harassing me, abusing me and pushing to get money from me," he told Sydney radio 2GB in June.
His brothers, Sameh and Hozifa, were granted conditional bail in June after pleading not guilty to charges of using a carriage service to menace or harass, regarding claims they tried to extort $200,000 from their brother.
An interim domestic violence prevention order prohibits the pair from going within 100m of their brother or where he lives or works.
The tobacconist made headlines around the world after video footage of him disarming a gunman during the Bondi massacre went viral.
He was visited in hospital by Prime Minister Anthony Albanese and was awarded the Keys to the City of Canterbury-Bankstown, where he lives, and Waverley, where the attack took place.
8°C