Indeed there is a link to the counselling offence that's proposed in Bill C-59. The “terrorist propaganda” definition is proposed to be amended to mean “any writing, sign, visible representation or audio recording that counsels the commission of a terrorism offence”. It's very closely linked to the new counselling offence.
There were concerns with the current wording of the terrorist propaganda definition, which is “advocates or promotes the commission of terrorism offences in general”, suggesting that this wasn't so easy to apply. That has been deleted, fulfilling a commitment the government made to narrow overly broad definitions, including “terrorist propaganda”.