Two men have been issued with criminal infringement notices for offensive behaviour over the vandalism of a memorial at Bondi Beach for Israeli hostages taken by Hamas.
The installation of 230 beach towels and pairs of thongs beside posters of those kidnapped on October 7 had run more than 100 metres along the concourse.
It came amid heightened tensions in Australia over the Gaza conflict.
On Thursday, footage emerged of two men attempting to take down posters of the hostages while being confronted by a larger aggrieved group.
The men can be seen with scrunched-up posters in their hands in the footage.
"The hostages aren't here, mate, they're not here, so why are we bringing it here," one of the men can be heard saying.
"This is my family," a woman from the larger group responds.
An investigation into the incident was launched, with police on Friday announcing that officers had spoken to two men.
"As part of inquiries, police attended a Granville home and spoke to a 25-year-old and a 40-year-old at a Bankstown home," police said in a statement.
"Both men have been issued criminal infringement notices for offensive behaviour, which carries a fine of $500."
Executive Council of Australian Jewry co-chief Alex Ryvchin said on Thursday the vandalism went against Australian values including the right to peaceful, dignified displays.
Many Israeli hostages continue to be held by Hamas, which controls the Gaza enclave and is considered a terrorist organisation by the Australian government.
Israel has been bombarding and laying siege to the Palestinian territory in its bid to destroy Hamas and free the hostages.
However, it is under increasing international pressure to relent amid soaring civilian casualties and claims by United Nations officials that the siege amounts to a war crime.