The 65-year-old is set to be released in May without supervision after spending a quarter of a century behind bars for his role in the gruesome South Australian murder spree that resulted in the deaths of 12 victims, including his wife Elizabeth.
Her body and seven others were found in plastic barrels in the vault of a disused bank in Snowtown, north of Adelaide, in May 1999.
SA Solicitor-General Mike Wait SC said Haydon's lawyers had dropped an interlocutory application. (Jacob Shteyman/AAP PHOTOS)
The SA government has applied to the Supreme Court to declare Haydon a high-risk offender and have ongoing parole conditions imposed on him beyond his release.
Dressed in prison overalls, Haydon appeared in court on Wednesday via video-link - his heavy beard and long, unkempt hair greyed by his 25 years in custody.
SA Solicitor-General Mike Wait SC told Justice Tim Stanley that Haydon's lawyers had dropped an interlocutory application challenging the government's application after parliament rushed through amendments designed to widen the definition of a high-risk offender to include those convicted of assisting an offender.
"We withdraw that application in light of the amendments that have been made last week," Haydon's lawyer Sam Abbott KC confirmed.
Mr Abbott and Marie Shaw KC, also acting on behalf of Haydon, asked for his entire correctional services records relating to his time in prison to be delivered to the court and made available to the parties.
Mr Wait did not voice his opposition to the request but said he would first have to take instructions before agreeing to such an order in case logistical issues would arise.
Haydon stored the bodies in his shed and later rented the infamous Snowtown bank. (Rob Hutchison/AAP PHOTOS)
The SA parole board granted Haydon's parole in February, saying he was well-behaved during his years in custody.
Parole board chair Frances Nelson said Haydon would be allowed an early release under supervision, saying he would benefit from a period of parole prior to his full release.
John Bunting and Robert Wagner were found guilty of the murders in 2003.
Both are serving life sentences with no chance of parole.
Haydon was found to have assisted his close friends cover up their crimes by storing the bodies of murder victims in barrels in his shed, and later renting the infamous Snowtown bank.
The court will continue to hear the government's application in April.
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