Daniel Keneally was sentenced to a 15-month intensive correction order in Sydney's Downing Centre Local Court on Thursday after earlier being convicted of fabricating evidence.
"This is a crime against public justice," said Magistrate Rodney Brender.
The intensive correction order was imposed despite police prosecutors urging the court to order full-time imprisonment during a sentence hearing in December.
Keneally, whose mother spent more than a year as NSW premier and also served as a Labor senator in the federal parliament, collapsed into his chair and began hyperventilating after the sentence was handed down.
Mr Brender said the 25-year-old was unlikely to re-offend given he had lost his career and was no longer working in the NSW Police Force.
Keneally wrote a statement containing numerous falsehoods relating to a phone call from Luke Brett Moore to Newtown police station in February 2021.
The statement, including claims Mr Moore wanted to kill a police officer, resulted in the activist being arrested and held in custody for three weeks.
Keneally's statement resulted in Luke Moore being arrested and held in custody for three weeks. (Dean Lewins/AAP PHOTOS)
The founder of ISuepolice was later released on bail and the charge dropped due to a recording of the conversation made on his phone.
Taken without Keneally's knowledge, the recording showed significant discrepancies from the officer's statement.
Mr Brender found Keneally's conduct caused Mr Moore serious harm.
However, he said the then-junior police officer made the false statement without any planning or apparent motive.
The imposition of an intensive corrections order would send a message to others not to commit similar crimes, Mr Brender said.
"An ICO is still a form of imprisonment."
Keneally was also ordered to complete 200 hours of community service and pay a $2000 fine.
Daniel Keneally was innocent and had made an "honest mistake", his lawyer said. (Dan Himbrechts/AAP PHOTOS)
Outside court, his lawyer Paul McGirr said the magistrate's decision would have been fair if his client was guilty of the offence.
But Mr McGirr said his client was innocent and had made an "honest mistake".
An appeal has already been lodged and Keneally will apply for bail on Thursday afternoon.
"Of course, he sympathises with Mr Moore but ... my client maintains his innocence and keeps his head up," Mr McGirr said.
"You, me, everybody, we all make mistakes."
An investigation by the Law Enforcement Conduct Commission led to Keneally's charge in October 2022.
The police watchdog said it would provide a report to the NSW parliament when the criminal proceedings ended.
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