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Key Points:

All government funding for art, culture, sports, & entertainment would cease
All demographic based government departments and policies would end
The government would not be involved in setting cultural or social policies, other than to protect the rights of individuals
Foreign aid would be substantially reduced
Anarchy zones could be set up that are exempt from most laws and taxes, but not entitled to any benefits or government services

Details:

Arts, Culture, Sports, & Entertainment:

Arts, culture, sports, and entertainment services fall well outside the core government functions. These would be left to the private sector, who would choose which services and events to support and fund via ticket sales and donations rather than bureaucrats deciding who should get support. This will also reduce opportunities for corruption. Lower tax rates should provide plenty of opportunity for especially the wealthy to become patrons of the arts and replacing government funding for any worthwhile projects.

Funding for historical sites, museums, and archives would continue.

Fiscal Impact: I estimate the government would save $650 million by ending funding for arts, culture, sports, and entertainment

Demographic Departments:

The government would have no responsibility for taking care of the needs of any particular group other than protecting their individual rights. All government departments existing to provide support to a particular race, sex, or age would be closed down, and any policies and funding directed towards the same purpose would be cancelled.

Cultural and Social Policy:

The government would not prevent any individual from carrying out any activity or living any lifestyle they wished to, provided that the activity or lifestyle does not infringe on the rights of others. No funding or promotion for any social or cultural viewpoint would be given by the government. Secular organisations such as churches could promote and encourage what they consider to be the moral way to live but would receive no support from the government.

Foreign Aid:

Foreign aid is essentially having politicians and bureaucrats decide on your behalf which international charities you are going to donate to. Like most charities, a large portion of these donations end up enriching the administrators instead of going towards the stated intention, and foreign aid is especially prone to corruption and money laundering.

Foreign aid also rarely helps the recipients, promoting dependency instead of working to support themselves. It would be much more beneficial to be a good example of how to use free markets to achieve prosperity. I propose that foreign aid be severely cut to limit its misuse, and any remaining programs would have to demonstrate a clear benefit to New Zealand. Any worthwhile international charity work should have no trouble finding private donations to continue their work.

Fiscal Impact: I estimate savings of $944 million by reducing foreign aid

Anarchy Zones:

If the agreement of 100% of landowners was reached in a contiguous area with a minimum of 100 permanent residents, that didn't contain a transit route used by non-residents, they would be allowed to set up a special anarchy zone. Any residents in this zone would be exempt from most laws and taxes and would not be entitled to any benefits, government services, or voting rights. These zones would not have to be solely used for anarchial societies, the residents could form other systems of government if they chose. They would not be completely without oversight though, and the following conditions would need to be met in order for the area to maintain its status:

There could not be widespread violence, abuse, or neglect, especially of children, and any serious cases would still be prosecuted in NZ courts. Access would have to be granted to NZ police for investigations relating to any serious cases.
No one could be prevented from leaving the area for any reason, nor any difficulties put in the way of someone who wanted to leave (including withholding personal funds or property). The area could restrict who could enter the area if the wished (other than those conducting official duties).
The area could not be used as a refuge from any crimes committed in the rest of NZ, and offenders would remain subject to extradition for these crimes.
No international visitors or goods could travel directly to the area without passing through standard NZ customs first.
Residents must live in the area for more than 274 days per financial year to be eligible for tax and law exemption status and must register their status with the NZ government. Temporary residents or visitors to the area remain subject to normal NZ law and taxes. If the permanent population of the area falls below 100 for more than a year the area would lose its status.
GST would still have to paid on any goods or services purchased from outside the area, and any goods or services that were sold from the area to the rest of NZ would have to have GST collected on them.
Environmental pollution that crosses the borders of the area must be kept within minimum standards.
Any vehicles travelling outside the area must be registered, of minimum standards, and pay road tolls. The maintenance of any roads (and other infrastructure) within the area would be the responsibility of the area - the road tolling system would be an optional way to raise revenue for this.

The benefits of these areas to the rest of New Zealand would be:

They would be a release valve for those who most strongly feel the oppression of the government (including Maori separatists), reducing tensions.
They would be a check on the power of the government in the rest of NZ - if the areas become too numerous and popular, it would be a good sign that the government needs reform.
They would serve as a test bed and proof of concept for policies that (if successful) could be implemented in the rest of NZ.

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