sort of.... undergrad stuff have 4 levels
and it's not confined to 1st year = level 1 etc etc - that's not possible since some degrees only have up to level 3 but go for 4+ years
They often work out that way but not always - so check them, don't just pick them based on the assumption that certain levels match certain years. Eg - in law, if you do certain electives, they are level 2, but you could be doing them in 5th year.
Don't worry too much about it... it's not like level 1 units equate to x hours of study and level 2 equate to 2x hours of study... just check with your course handbook to see if there's limits for how many you can do of each and if so, make sure you check the levels before enrolling. it's not that big a drama really as most courses provide adequate core and elective units to make sure you have enough choice whilst satisfying these requirements. If you're really unsure though - talk to your course coordinator.
Honestly, people worry about it all for no good reason. Yeh, some people are convinced that level 3 are so evil and dramatically difficult - even if this is the case, they're more difficult because you're meant to be able to cope with them by that point in your degree. So don't stress too much (if you are..?) about the difference between them - just satisfy your course requirements and that's all you need to worry about really
As far as the student contribution bands - read the HECS/Fee Help info you'll get either in the mail or your academic advising session - it's all explained in there.
It doesn't matter much at the moment unless you plan on paying them now rather than letting the debt accrue, but if you are paying up front - make sure you check (you'll get a bill with all the details in the mail anyway once uni commences) because it's not as simple as certain schools of degrees equate to certain bands.
Eg - i'm doing law, law is generally band 3, however, i have quite a number of level 1 and level 2 contribuution units because they are classified as "legal studies" not "law" so they are categorised alongside social science style units.
Don't worry though - they explain all this on advising days and if you're really lost - call the student centre an dthey'll help