The 34-year-old Australian actor, who was accused of breaching an apprehended violence order earlier this year, was cleared after his lawyer Chris Murphy told the magistrate that he is suffering from a significant mental illness.
Newton broke the rules of his restraining order in February by trying to contact former girlfriend Rachael Taylor. Newton and the Transformers actress had split in 2010 after he allegedly attacked her during a trip to Rome.
According to AAP, Murphy said that the Underbelly star was suffering from social phobia and post-traumatic stress disorder, is prone to panic attacks and is manic depressive and obsessive compulsive. He has spent 63 days undergoing treatment in a psychiatric clinic.
Judge Antony Townsden allowed the charges to be dropped after hearing that Newton was "involved in a regime of seriously mind-affecting drugs". He was ordered to continue his treatment plan for at least the next six months.
Newton's mother Patti was in the court but, similar to his March court appearance, her son did not acknowledge her.