Police said two local teenagers, aged 17 and 19, had been questioned about the incident but they determined the blaze in September was accidental.
READ MORE: ‘Long way to go’ in fight against NSW, Queensland bushfires
A Queensland Police spokesperson said as a result the teens wouldn’t be prosecuted.
Police released more details after a backlash from locals. Police were keeping information under wraps over fears those responsible would be vilified.
The community has so far respected the police decision.
The fire destroyed the township’s historic Binna Burra Lodge when it tore through the Gold Coast hinterland in mid-September.
Owners have vowed to rebuild it.
Fires apply in Queensland for people caught throwing cigarette butts.
Offenders can be hit with a $533 fine for throwing them on to dry grass in high fire danger conditions.