Hey, I don't personally study engineering at MQU but I have a couple of mates who do and one who transferred to UNSW from MQU, so i'll try to give you some insight.
Firstly, engineering at MQU is relatively new, and thus, not really established. This will prove to be a problem when you're trying to transfer into a university with a much more "mature" engineering faculty (e.g. USYD or UNSW). My mate who transferred into UNSW had a WAM of 70~75, however he only got 1/8 courses recognised when he transferred.
Secondly, getting a distinction average would be achievable if you pick the right courses. For example, you'll have the choice of choosing either "normal" maths and physics or "harder" maths and physics. And unless you did 4 unit maths in high-school and aced physics, you'll most likely fail or get a credit max in the "harder" maths/phys (obviously if you try hard enough you'll be able to even get a HD). Btw, the unit which my mate got recognised was the "harder" physics, I'm not sure "normal" physics gets credit recognition when transferring to UNSW (also not sure about USYD).
I'm not sure what your ATAR was but if you are able to get into engineering at UTS I would say go for it, as engineering at UTS in my opinion is a great option. However, if you do not have the sufficient atar and want to stay in Sydney, go to MQU, choose the easier/normal maths and physics subjects and achieve a WAM of bare minimum 65, but aim for 70s. This option though will mean you'll have to stay at uni for an extra year, which is not that bad.
Good Luck!!!
