Felix John Jerzy Kiera made the gesture after stepping in front of the Trans Day of Resistance Rally, an event held to protest the marginalisation of trans and non-binary people on November 23.
The 21-year-old was immediately arrested by police officers attending the march, which was held at Newtown in Sydney's inner west.Â
On Tuesday, he pleaded guilty in Newtown Local Court to one count of knowingly displaying a Nazi symbol in public without a reasonable excuse.
Kiera was supported by his father in the courtroom and handed up a letter of remorse.
"I was ignorant, Your Honour," he told Magistrate Alexander Mijovich.
His Legal Aid lawyer argued for a non-conviction, saying the gesture was brief and did not incite anyone else to join in.
However, the magistrate opted to convict the 21-year-old and impose a $1000 fine.
Felix Kiera did not say anything to reporters as he left court. (Steven Markham/AAP PHOTOS)
"The message has to go out to the community that this is just unacceptable in any event," Mr Mijovich said.
While a maximum jail-term of 12 months was available for the offence, the magistrate opted for a less severe punishment after taking Kiera's youth and lack of criminal history into account.
The guilty plea was made after prosecutors withdrew a second charge of making a gesture in a public place that is a Nazi salute.
Kiera did not say anything to reporters as he left court.