Without knowing anything about the current state of NZ politics, some general political strategies could be the source:

1. since they are in a lame-duck state (as you mentioned, everyone expects there will be an overhaul), they are trying to get done the dirty stuff they promised to big donors (this particular thing looks like a wet dream of Rupert Murdoch, for example)

2. since they expect to be beaten, they think unleashing the "dogs of hell" of unregulated media might actually help them

3. they have an actual proposal that is different from this but that they can sell as a compromise, after the inevitable pushback on this one, which will then be rushed through sight-unseen "because there is no time left"

4. this is just campaign noise, meant to attract interest from moneyed media so that they get treated well in the upcoming election cycle

If I were a betting man, I would put money on 1.