O’Keefe, who returned early from Australia’s ill-fated tour of Sri Lanka with a hamstring injury, allegedly abused police, security staff and managers at The Steyne Hotel while intoxicated, reports said.
O’Keefe was charged with a breach of CA’s Code of Behaviour — conduct unbecoming of a player -– and accepted a fine of A$10,000 ($7,630).
He was also told to undergo counselling and education as part of the sanctions, CA said.
Police also issued O’Keefe with an infringement notice for offensive behaviour at the hotel, meaning he must pay a separate fine.
“We take a zero-tolerance approach to this type of behaviour from players at any level in Australian cricket,” Cricket Australia executive general manager Pat Howard said in a statement.
“Steve understands our expectations and that we’re extremely disappointed this situation occurred, particularly as he is recovering from an injury.”
O’Keefe apologised for his actions and said: “I know I failed to uphold the high standards expected of a NSW (New South Wales state) and Australian cricketer and apologise to all concerned.
“I take full responsibility for my actions and accept the sanction handed to me by Cricket Australia.”