The man was first accused last month of taking and sending the troubling pictures, reports 7 News, which prompted Planning Minister John Rau to order a report which triggered a police investigation into the incidents.
When the report came back from the cops it simply stated that: 'police have no evidence of any criminal offence having been committed.'
This is because while what the man did was ghastly - it isn't technically illegal.
'I think it's immoral and reprehensible conduct but in the eyes of the law it's not an offence,' Adelaide lawyer, Craig Caldicott, explains.
He adds that it will probably continue to be a grey area - because loved ones take photos with the deceased frequently, and textbooks also feature photos of dead bodies and it would be hard to specify when it is okay and not okay to take a photo of a deceased person.
The man is no longer employed by the Adelaide cemetery.