It seems to be a response to the government's threat to legislate, albeit a ham-fisted one. Responding to a threat doesn't mean the threat is valid, or that the response is of any use to anybody.
The difficulty with any analysis of the impact of Google and Facebook on news in Australia is that news has never been funded directly. It was traditionally paid for by advertising revenue which was obtained from advertising products that were co-delivered, interspersed among news products.
Google's advertising model superseded Murdoch's traditional advertising model, but Murdoch's core advertising businesses were not killed by Google alone. They lost out to direct internet competitors:
Seek took the classified advertising revenue for jobs
Domain took the classified advertising revenue for property
eBay, Gumtree, Facebook and Google took the display advertising revenue
If the government's concern is that journalism has suffered, the evidence it can point to is that 50% less people are employed in journalism compared to 20 years ago. The most sensible remedy for that problem is not to transfer wealth from Google and Facebook to Murdoch's entertainment corporations, but rather to fund grassroots journalism through programs that directly result in the production of news by journalists, in ways that preserve editorial independence.