UPDATED 10:24am: Maori Party founder Tariana Turia has been made a dame.

She's received the title in this year's New Year Honours.

Sky's Todd Simmons reports.

"Ms Turia famously crossed the floor when the Labour Party introduced the foreshore and sea bed legislation.

"She split from the party and formed the Maori Party, which she co-led until the 2014 general election.

"She said the title is an honour for her whanau, hapu and Iwi but she doesn't think it will change much."

Maori Party co-leader Te Ururoa Flavell says her decision to cross the floor over the controversial foreshore and seabed bill is a defining event in New Zealand politics.

He says her courage has inspired thousands of New Zealanders to protest the erosion of Maori customary rights.

She says she's thrilled.

"I felt very humbled by it actually."

She says it's now time for her to step back from politics and let a new generation take the helm.

Arts patron Adrienne Stewart has also become a Dame.