So that's in two electorates (Upper Hunter and Dubbo) held by the Nationals.
The Upper House "how to vote cards" in 15 electorates are not "directing preferences" technically - they are advisory only, if people choose to follow them and be bothered to number more than a "1" for Labor above the line.
A number above the line means your votes are distributed to that whole group of candidates in the order they are listed below that square, starting from the top. So a person chooses whether their preferences are distributed beyond one party, and in what order they personally choose to number any other parties. Noting that there are only vacancies and Labor candidates listed anyway....
It would be more accurate to say that Labor is suggesting to people (in only 15 seats) that for the upper house they number the SFF candidates somewhere before they number the One Nation candidates - this is typically done in return for a return deal on the order in which they appear on the lower house how to vote papers handed out of the day by the other party (in this case SFF) in that area.
Of course the LNP are screaming about it, because they like to direct preferences/suggest people vote for One Nation quite high on their how to vote orders in all areas!