University rates were trending up and were always going to increase anyway.
Jobs that you can get with only a high-school (or less) education are drying up. In my parents day, say the 70s and 80s, these were everywhere. Now so many jobs need some kind of certificate or qualification, not having a university degree locks you out of a lot of places, where you might not have previously been locked out (a lot of the public service, etc).
Likewise, under government control, IT enrollments peaked (everyone thought it would be huge) and crashed (the market didnt need that many graduates). Arguably, the same thing happened for pharmacy. The government still allowed enrollments to rise. The question is should bureaucrats in Canberra be formulating these numbers (God knows how they figure out how much or little of X or Y we need and from which universities, see IT and pharmacy debarcles)?
University shouldn't be hard to get into. It should almost be like taking a language course for fun. You can take it up, if you do poorly, well, thats your fault and you deal with the consequences. Indeed, ATARs and caps aren't designed to be a medieval guild system to lock people out of universities, all they are designed to do is share out a scarce resource in a fair way. If we were in a position where it was easier to educate everyone in universities, a lot of these caps and entrance requirements would evaporate.
Also remember, by making it harder to get ino university, you make it harder for those least able to get into university (primarily kids from low socioeconomic backgrounds).