I did exactly that, and have no regrets.
I effectively swapped to part time and worked full time since second year when I did my internship. This would have been difficult (maybe impossible) to do for such a long amount of time at UNSW or USYD, so the practical nature of the subjects as well as the flexibility offered for timetabling + convenient travel helped a lot for me.
But with that being said, there's definitely pros to UNSW or USYD and their subjects are definitely more rigorous and have more contact hours etc.
I'd recommend comparing the actual courses at each uni and also considering what you want to actually get out of the internship and university in general.
Software Engineering was totally overhauled from the old ICT Engineering degree, it's an improvement but i'm not well versed enough in the new course or the current offerings at UNSW or USYD to be able to compare the current iterations of courses.
Despite being happy with my choice, i'm still planning on doing a more theoretical postgraduate course as I want some more exposure to that side of things. But my course combined with some self study/on the job learning has still easily been sufficient to start and progress in my career as a software developer - the postgraduate study is more out of interest.