Jacinda Ardern and Mike Hosking have gone head to head on New Zealand's Covid response, with the Prime Minister insisting our recovery is on track to be better than Australia's.

Despite New Zealand's GDP falling 12 per cent compared to Australia's 7 per cent in the most recent June quarter, Ardern said New Zealand's debt and unemployment levels were lower, and there had been fewer deaths.

Our wage subsidy supported 1.7 million people and businesses had been supported financially faster, she told Hosking on Newstalk ZB today.

Melbourne was also still in a significant lockdown.

"It's a pure matter of opinion... we've still got a way to run. Many times when you and I have discussed New Zealand's approach to Australia, my view has been let's see how things fare when we are out the other side of this."

Hosking played Ardern an audio clip of Australian PM Scott Morrison, talking about the countries' relative GDP performance.

"Why do you think PM Morrison was having to answer that question? Because New Zealand in Australia is compared favourably for its approach," said Ardern.

She told Hosking that he was assuming New Zealand was not going to have a sharper recovery. "If your measure of success is one quarter of GDP, that's for you."

"All the signs are that we are going to have a sharp recovery."

She said there was no cost-free or impact-free response to the pandemic. "There is no economy in the world that either hasn't had a hit to the likes of consumer confidence or a hit to GDP or a hit to debt levels. Relative to other countries, we are more open."

Hosking challenged Ardern on that comment, saying she was "making this up as you go along" - highlighting New South Wales, which had more cases than New Zealand, would have full crowds back at big rugby league games this weekend.

Ardern said NSW had recently had limits on hospitality and gatherings like New Zealand, which is also easing rules as of today.

Ardern: "Mike, if in your view there's a perfect model here, you are welcome to that view."

Hosking: "No you are being too linear. It's not a matter of a perfect model or a non-perfect model, it's about nuance and subtlety."

Ardern: "Mike, if you're saying you're now a person of nuance and subtlety, bless. I am not going to claim perfection but I will stand by our response."

Ardern said that director general of health Ashley Bloomfield had asked Cabinet to consider a 500-person limit for indoor gatherings at level 1.