The 31-year-old was arrested in February after an incident at a police station in Fortitude Valley, a lively bar district in the Queensland state capital.
He was charged with assaulting police and "entering a police establishment without a lawful excuse", but the assault charge was later downgraded.
Higginbotham did not appear for sentencing in Brisbane Magistrates Court on Friday and police subsequently dropped the charges, the Australian Rugby Union said on its website (rugby.com.au).
"I'm pleased that the allegations have been withdrawn," the 34-test number eight told the website.
"I have the utmost respect for police and what they do in the community.
"I'm glad that the matter is now behind me."
Higginbotham was recalled for the Wallabies' June internationals but was omitted from Michael Cheika's Rugby Championship squad.
Australia will bid for their first win in the southern hemisphere tournament against Argentina in Canberra on Saturday.
(Reporting by Ian Ransom; Editing by Amlan Chakraborty)
