"Mr Harwin’s decision to resign from cabinet was appropriate when he received an infringement notice in April,but now that he has been cleared,it is appropriate that he return to cabinet,"Ms Berejiklian said.
"Mr Harwin has always assured me that he did not break the rules."
Mr Harwin did not appear in Gosford Local Court on Friday where a representative for the Director of Public Prosecutions appeared via video link to withdraw the fine.
"It's withdrawn and it's dismissed. He's discharged,"magistrate Peter Barnett told the court.
An ODPP spokeswoman later said the evidence against Mr Harwin was unable to establish that he left his place of residence"without a reasonable excuse as provided by the Public Health Order,"and that the order"did not restrict a person to a single place of residence."
The matter was closed just 20 kilometres north of the holiday home in Pearl Beach on the Central Coast where he was allegedly caught breaching COVID-19 restrictions.
Following the court outcome,a senior Liberals source had indicated the court decision would pave the way for Mr Harwin's return to cabinet."Absolutely he can come back,"the source said.