This change means that people will soon have more choice when getting a .nz domain name. This is because existing 'second levels' – like the '.co' in '.co.nz' and the '.org' in '.org.nz' – are going to become optional.
This means you could register with them, without them, or both. As an example, you could get 'anyname.co.nz' as well as anyname.nz'. Registering one of these new, shorter .nz domain names is called registering directly at the second level'.