y career counsellor said that employers DO NOT care what uni you went to, they care more about how well you were involved and how well you performed.
This is true but what you have to consider is, like ninwa said, often one Uni is known to grade a lot harder than another. Therefore a HD at VU (sorry but esay choice!) might only translate to a D or even Credit at UoM.
It's all about perception. Just because you might not believe that one Uni is harder/better than another doesn't really mean anything if employers perceive it that way.
If you were an employer and had two grads who were identical in all other ways, and it only came down to Uni (Ie VU and UoM), who would you choose?
With that being said yes there are many things you should consider. For me I like the atmosphere of UoM and it's about 10 mins from my house by tram (hey maybe I'll ride my bike!).