So, how about an ilustration:
If there was a student from UTS with a HD average, and a student from UNSW with a C average, I think employers would favour the UTS student over the UNSW student, all else being the same (extra-curriculas, work experience, manner etc). However, if two students were essentially the same but came from different universities, I think the university one attended would play a large role in determining who gets the job/interview.
In saying that, if you look at the commerce/law degree, UNSW students are more inclined to working in a financial institution, whereas Sydney students tend to go into the law firms, associateships etc and less into an IB or wherever. Accordingly, Sydney graduates would get paid less in their graduate years and also explain why there are more UNSW students than Sydney students at interviews for banks.
Personally, I think the name of the university matters. I wouldn't give a shit about a Macquarie student if he/she came in with HD average if there was also a Harvard graduate who say, only had a D average.