McArtney rose to fame after founding Hello Sailor with fellow guitarist-vocalist Harry Lyon and frontman Graham Brazier in 1975.
The group built a huge following on the back of singles including Gutter Black, which was written and sung by McArtney.
He went on to found the popular band The Pink Flamingos in the 1980s.
His Hello Sailor bandmate Harry Lyon said McArtney was a loyal and longstanding friend who leaves behind an incredible body of creative work.
He and the other remaining members of Hello Sailor were planning to get together later today to "shed a tear" over their lost bandmate.
"We used to call him Dunkirk Dave. Because he's that guy you want to see on your right shoulder when you go over the top."
Lyon said he started his first band with McArtney while they were both in school in 1963.
"He's more than just bandmate. It's friendship that holds us together."
The New Zealand Herald understands McArtney had cancer.
Staff and students at music teaching institute MAINZ, where he had worked as a tutor for 10 years, were going to be being told the news this morning.
McArtney has two adult children.
John Dix, the author of Stranded In Paradise: New Zealand Rock And Roll, 1955 To The Modern Era said news of McArtney's death was "devastating", in a post on Facebook this morning.
He said McArtney was "one of the greats".
"Within and outside of Hello Sailor, he was a great. He was also one of the most unassuming guys on the scene.
"He was a good companion. He was generous with his time and his experience, always willing to pass on advice to his students."
