https://policy.unimelb.edu.au/MPF1053From your first 2 years of study, the marks of your 2 lowest subjects will not be counted towards the GPA
So it's not the marks of your 2 lowest subjects in your first year, but in your first 2 years.
When I say first 2 years of study, I mean your first 200 points. So if you are a part time student who took 2 subjects per semester, it would have taken you 4 years to complete 200 points worth of subjects.
But yeah, they look at your most recent 300 points of study (usually each subject is 12.5 points each, which you probably already know), and remove the two lowest subjects that made up the first 200 points of study, so your 100 most recent points of study all count, leaving your GPA to be calculated from the remaining 275 points.
Your GPA will only be calculated this way if you were applying for a lot of the graduate or postgraduate degrees at UoM
onlySo if you wanted to apply for an honours or masters degree after your undergrad at UoM, which most people do, then this is the GPA they'd use.
If you're applying for medicine or dentistry - and maybe a few other degrees at UoM - all 300 points will count. Even failed subjects will be counted in your GPA when applying for medicine and dentistry at any university, even though they don't count for any points