From the AIC:
2. REASON FOR THE AERODROME NAME CHANGE
2.1 At present, Wollongong Airport (YWOL) to be renamed Shellharbour Airport/ Wollongong Gateway (YSHL) is located in Albion Park.
2.2 Albion Park is located in the Macquarie Valley in the City of Shellharbour.
2.3 Wollongong Airport is not a true reflection of the airport’s location.
Prior to the exodus of the "back room" experienced people in Airservices, proposals to change aerodrome names used to be referred to the regional RAPAC & CASA before progressing, to gauge opinions and potential impact. Some got knocked back due to potentially causing confusion and a safety issue. In some cases NAVAID idents would be involved.
I don't see any mention in recent NSW/ACT RAPAC minutes, so this one may have just been the AD OPR direct to Airservices AIS who just processed it without thinking about wider consultation and the impact.
It is usually the AD OPR who originates such changes, following a
PR-type's thought bubble.