New Zealand opposition MP Kelvin Davis has slammed One Nation senator Malcolm Roberts following his call for sanctions following a UN resolution on Israel.

The UN Security Council passed a NZ-co-sponsored resolution condemning Israeli settlements as having no legal validity last month.

One Nation senator Malcolm Roberts said he was "outraged" by the development and this week called for Australia to review immigration arrangements for Kiwis.

"At the very least we should look at further cutting benefits for New Zealanders living in Australia," Senator Roberts said in a statement.

"Perhaps a tougher immigration policy aimed towards New Zealand would stop Kiwis from establishing settlements in Australia."

NZ Labour MP Kelvin Davis described Senator Roberts' statement as "totally offensive" and said he had to "Google him to work out who the heck he was".

"This guy is a climate change conspiracy theorist, he's a racist...he's just using this a platform for self promotion," Mr Davis said.

"You've got to call out stupidity where-ever it exists."

The resolution passed on December 23, and called Israel's continuing establishment of settlements in Palestinian territory "a flagrant violation under international law and a major obstacle to the achievement of the two-state solution".

Israel has recalled its ambassador from New Zealand and Prime Minister Benjamin Netanyahu has reportedly told the Kiwi foreign minister he viewed the resolution as a "declaration of war".

The UN move has also led to a diplomatic spat with US President Barack Obama, after America abstained from the vote instead of using its veto power.

Foreign Minister Julie Bishop has indicated that had Australia been able to vote on the resolution, it would likely have opposed it.