Alicia Gardiner, known for her roles in the television series Offspring and Deadloch, was originally charged with unlawful assault over the incident at the Victorian parliament on May 7, 2024.
But prosecutors sensationally withdrew the charge on Wednesday afternoon, midway through a contested hearing at Melbourne Magistrates Court.
Gardiner admitted she was among a group of pro-Palestine protesters who crashed the Victorian treasurer's budget speech, chanting and holding signs in the public gallery.
As they were escorted out, it was alleged Gardiner tried to enter the legislative chamber but was stopped by two workers blocking the door.
Gardiner was accused of pushing one of the workers before grabbing and twisting the woman's left breast.
The complainant, who asked not to be named, gave evidence over several hours, telling the court she felt a sharp pain like a knife and was in a state of shock.
"My view was she broke the girl code and twisted my breast," the complainant told the court on Wednesday morning.
"You don't do that."
The woman told the court Gardiner had stared at her intently before bending her head down and coming at her with her hands up.
The complainant admitted she put her own hands up to stop Gardiner from entering the legislative chamber.
"I had my hand on her and then I had the sharp pain," the complainant told the court.
Before the lunch break, magistrate Malcolm Thomas noted it would be open for him to conclude there was a grabbing or twisting of the breast.
But once the parties returned to court at 2pm, the prosecutor applied to withdraw the assault charge.
He did not give a reason for the withdrawal.
Gardiner's lawyer Angeline Centrone said her client would plead guilty to the remaining charge of refusing to leave a parliamentary precinct.
Ms Centrone told the court Gardiner had always denied the assault allegation but she accepted she did not leave the parliament when told.
The lawyer noted it was her client's first time before the court and, given her prior good character, a good behaviour bond or fine without conviction would be appropriate.
Ms Centrone noted the life of an actor meant finances could be quite lean and Gardiner was relying on her savings.
Mr Thomas said that sounded similar to the life of a barrister as he fined Gardiner $500 without conviction.
Outside court, Gardiner told reporters she had spent the past two years denying the assault and police had finally withdrawn the charges.
"I pled guilty today to the charge of failure to leave the parliamentary precinct," she read from a statement.
"I was there to give voice to something important and I will continue to speak up for what I believe in."
She refused to take questions as she walked from the court precinct.
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