Parliament has passed legislation removing the five-year disqualification penalty for real estate agents who fail to complete continuing professional development requirements or pay fees on time.

The Regulatory Systems (Occupational Regulation) Amendment Bill passed its final reading on Friday, with Associate Justice Minister Nicole McKee announcing the change.

McKee said no other regulated profession faces such a severe penalty for CPD non-compliance. "It is out of step, out of proportion, and can stop people from earning a living in their chosen profession," she said.

The case of Janet Dickson, who faced a five-year ban after refusing to complete a CPD topic she considered irrelevant to her work, drew attention to the issue.

McKee said she has directed the Real Estate Authority to make CPD requirements relevant to the work real estate agents perform.