The 31-year-old left-arm spinner was part of the Australian test team currently in Sri Lanka but returned home after a hamstring injury in the first test cut short his tour.
O'Keefe was issued an Infringement Notice by New South Wales Police for "offensive behaviour," the CA said without disclosing details of the incident. Local media alleged the player was intoxicated when he abused police and security staff.
"We take a zero-tolerance approach to this type of behaviour from players at any level in Australian Cricket," CA executive general manager Pat Howard said.
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"Steve understands our expectations and that we’re extremely disappointed this situation occurred, particularly as he is recovering from an injury."
The spinner, who has played three tests and seven Twenty20 Internationals, will undergo counselling and education as part of his sanction.
"I know I failed to uphold the high standards expected of a NSW and Australian cricketer and apologise to all concerned,” O'Keefe said.
"I take full responsibility for my actions and accept the sanction handed to me by Cricket Australia."
(Reporting by Amlan Chakraborty in New Delhi; Editing by Clare Fallon)
