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The RNZAF Skyhawks underwent an extensive refit here are some of the details

In 1984 New Zealand decided that they would upgrade the 22 Skyhawks that they already had. The J52-P-8A engine was retained, but the electronics were substantially upgraded. The retrofit program was given the name Project Kahu (Hawk). The AN/APG-53A radar was replaced by the AN/APG-66NZ, and the Litton LN-93 INAS, the Ferranti 4510 wide angle heads up display, the Vinten airborne video recording system the General Instruments ALR-66 radar warning receiver, and a Tracor ALR-39 chaff/flare dispenser were all installed. Because of advances in miniaturization, it was possible to incorporate these additional electronics items entirely within the fuselage without requiring the use of the dorsal hump. The Kahu-modified Skyhawk could be recognized by a bladelike ILS aerial on the leading edge of the vertical fin. The Kahu modified Skyhawk could carry the AIM-9L Sidewinder air-to-air missile, the GBU-16 laser-guided bomb and the AGM-65 Maverick air-to-ground guided missile. The wing was rebuilt, the wiring was completely replaced, and the cockpit was completely rebuilt.

So the swapping over of some of the avionics was not such a weird idea as it may have initially sounded.

[snip] lots of great inside details [/snip]

So it sounds that they were going to buy a fleet F-16s and bunch of F-16 AV packages as two seperate items. This way there wouldn't be the cost of retraining the squardon of A-4 pilots and the migration to the F-16 airframe could start with the next batch of pilots.

That makes a bit more sense - if they only went through with the plan. Now the RNZRAF doesn't have anything resembling a jet fighter in service.