The decision ends a lengthy campaign by survivor Steve Smith, who was sexually abused by a priest protected by Lawrence, to have the defrocked Anglican priest stripped of the honour.

Mr Smith began his campaign on Lawrence, the most senior church figure found guilty of such offences and the former second highest ranked Anglican in the Newcastle church, when the former dean was defrocked in 2012.

Lawrence was found guilty in July last year of sexually assaulting a 15-year-old boy at the Christ Church Cathedral deanery in 1991.

He abandoned an all-grounds appeal against his conviction and eight-year jail term in April.

A federal government gazette notes that the governor-general "accepted the resignation as a member" from Lawrence in late June.

The Medal of the Order of Australia is awarded for service worthy of particular recognition.

The process of award removal begins with a decision by the award secretariat, which offers the recipient 30 days to show cause why they should retain the honour.

That window also includes a provision in which the award can be voluntarily surrendered.

Mr Smith said that while he was happy with the result, it had taken too long for the award to be rescinded and he was disappointed the process had not been automatic.

"I've written at least 40 or 50 times and never had a reasonable reply from anyone," Mr Smith said.

"There's a conflicting emotion there. I'm glad its gone but I'm disappointed he was able to resign it. At the end of the day the man's a convicted child rapist."

"He should have had it stripped from him because that's all he deserved."

City of Newcastle had stripped Lawrence of the awards it had bestowed on the former dean of Newcastle, freeman of the city and citizen of the year, the day he was convicted.

Mr Smith said the result had been the right one, but the process had been unnecessarily difficult.

"After going through what I went through with the abuse and the royal commission and the trials ... I shouldn't have to do this. This isn't my job," Mr Smith said.

"I'm delighted that he's lost the thing but I'm just confused about the process involved."

Anglican Bishop of Newcastle Dr Peter Stuart said it was welcome news that Lawrence was no longer in possession of the accolade.

"These process of removing honours from convicted criminals should be automatic and not be reliant on community pressure."

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