Parliament's Speaker is expecting to make a ruling on the status of the United Future Party's parliamentary funding next week.
Mr Dunne told Radio New Zealand he believed the party were being penalised for being honest.
He said the situation had arisen only because the party had its hands up and said they were having difficulty verifying members, rather than just signing the usual statutory declaration form.
On May 31, the party asked that it be deregistered because it could not declare that it had the 500 members required.
On Wednesday the party failed in its bid to get the Electoral Commission to bend the rules to allow the party to get registered promptly.
Getting registered again could take at least two months, once the commission checks the details of the members.
United Future stands to have $186,000 in annual parliamentary funding cut if Parliament's Speaker David Carter decides it should lose its status as a party.
Peter Dunne updated Mr Carter on the re-registration process yesterday and said the Speaker is seeking advice on the matter.
