ERC is the pathway i'm in
It just means you must complete 5 ot of 6 semesters in years 3-5 in a rural hospital. The idea was that this scheme was made more for rural kids, but there are alot of melbourne people in this scheme. There are no postgrauate obligations after your course unless you are bonded and erc.
It is pretty hard to tell if it's easier to get into as alot of kids in ERC put it as their first preference. There are some advantages to be had with this scheme and disadvantages (being further from melbourne). I really wouldn;t reccomend applying for ERC as a "back-up". If you really would like to spend a year in bendigo and mildura, with more hands on experience, then ERC is a good option. However the attitudes of the vast majority of medical students is still rather elitist, perceiving these spots to be damaging to ones chances of obtaining a competitive speciality training spot.
It's a slightly different educational experience and due to the lower number of internships in country hospitals, chances are you'll find yourself with a metropolitan internship anyway