Prabh Srawn's disappearance sparked months of extensive searches throughout the sprawling Kosciuszko National Park of New South Wales, attracting volunteers from across the world to help find the 25-year-old.
Srawn was last seen when he parked his car at Charlotte Pass Village on May 13.
The reward was issued in June but Srawn's sister Mandeep told Fairfax Media that it was withdrawn following discussions with those involved in search efforts. "They've all indicated that they're not interested in the reward," she said.
She said search efforts had been hindered by poor weather in recent weeks, but were expected to strengthen in the near future.
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The reward for finding Srawn had increased to 100,000 dollars at the height of the search but this was scaled down.
"We haven't had very many people go up with the weather being bad," Mandeep said. "Sometimes there are only two people. This week there should be five."
The family returned to Canada last month but Mandeep said she not sure if they'd return to Australia.