The dialogue only met once in the four years since, in 2021 although it was due to meet next year.
"Recent events continue to show Iran's position on human rights is deteriorating, not improving," Mahuta said.
Iran has been shaken by protests since September.
They were sparked by the death of Mahsa Amini, a 22-year-old Kurdish woman who died shortly after being detained by morality police for allegedly wearing her hijab incorrectly. Her death sparked protests from women frustrated by Iran's theocratic government's repressive rules about dress, and the regime's rigid enforcement of these rules.
The protests have been met with a wave of violence from the regime. That violence intensified recently, with shots fired into the crowd at a ceremony marking 40 days of mourning for her death.
Mahuta said: "Aotearoa New Zealand continues to be appalled by the use of force by Iranian authorities in response to peaceful demonstrations following the death of Mahsa Amini last month.
"Images of shots being fired into the crowd at Mahsa Amini's 40th day mourning ceremony have shocked New Zealanders. The Shah Cheragh holy shrine in Shiraz was subject to a terrorist attack claiming over a dozen lives and injuring many more. We condemn this attack and offer our condolences to the victims".
New Zealand has been criticised for taking a soft touch to joining the international condemnation of Amini's death and the protests that followed.
It is believed the Government held its tongue at least in part because it was negotiating the release of two wealthy travel influencers, Bridget Thackwray and Topher Richwhite, who were touring Iran and posting about it to their instagram account.
The pair were detained in Iran in August.
The Government and New Zealand news media kept quiet about the pair's disappearance, fearing that publicising their case could have hampered efforts to negotiate their release.
Ardern said Thackwray and Richwhite were released by hard work from embassy staff, whom she thanked today.
When asked by reporters if any private money was exchanged to allow the pair's release, Ardern said the Government stuck to diplomacy and communication.
She said it was an indication of the value of the Ministry of Foreign Affairs and Trade that the pair had been allowed to leave.
Mahuta said it was uncommon for consular matters to be released into the public domain, when questioned why New Zealand news organisations were asked by the Government to not report on the case until the pair were safe.
"We actively sought out the experience of others ... to determine the approach we would take," Ardern said.
Ardern pushed back on any suggestion New Zealand did not condemn Iran while the social media couple were being held in Iran but did accept the release of the two Kiwis has allowed the Government to take further action.
She said New Zealand's position globally on the Iranian crisis had not been compromised.
"It is clear, however, we are now in an improved position to continue to ramp up our response [on Iran]."
Ardern has previously said she had been speaking out vehemently in support of Iranian women.
"Since the beginning of [October], I have been absolutely consistent on our deep concern around people's, firstly, ability to exercise their own religious freedoms in the way that they choose, be it women and girls in Iran or women and girls in Afghanistan, where we've also been very clear.
"Also, at the beginning of the month — it was not widely reported — but we called in, at my request, the ambassador of Iran to explain and share directly our deep concerns over what we were observing," Ardern said.
Ardern has also signed an international letter calling for Iran to be removed from a UN women's rights body.
The letter called for Iran to be removed from the Commission on the Status of Women (CSW).
The letter was co-authored by Hillary Clinton, Oprah Winfrey, and Malala Yousafzai.
Ardern said further advice has been requested by the Government on what other actions it could take to display its condemnation of Iran.
Asked if a law change was needed to impose sanctions, Mahuta said she would be seeking advice and whether the Russia Sanctions Act could be used in some way to facilitate that process.
On designating Iran's revolutionary guard as a terrorist, Ardern said countries that have done so - US, Canada, Bahrain, Saudi Arabia, Israel - were limited in number but she did not rule out receiving advice on the matter.
Mahuta also unveiled sanctions focused on the Russian defence and security sectors.
She sanctioned 14 individuals and seven entities including executives and shareholders from companies that design and manufacture missiles and firearms, as well as members of neo-Nazi paramilitary groups linked to the Wagner Group of mercenaries.
"Also sanctioned are Russian disinformation outlets including the InfoRos news agency and cyber operation run by Russia's military intelligence, and the Crimea-based propaganda outlet NewsFront," Mahuta said.
"By targeting these individuals and groups, Aotearoa New Zealand is making clear its condemnation of those who play a role in facilitating Russia's illegal and unjustified actions in Ukraine.
"Continued reports of indiscriminate attacks and widespread damage on civilian targets by Russian Armed Forces in Ukraine is deeply concerning," she said.
