Yeah I got it for USYD, for gettin youth allowance and my parents divorce, but I never heard of the levels either. I got 5 points, which doesnt mean I actually get 5 points, but I can get in (Possibly) for up to 5 points lower.
How it works is, say there are 10 EAS applicants who want to get into a course, and there is only 5 EAS places, then the top 5 UAI's out of the EAS applicants will get in, so the bottom five, who may have gotten UAI's within that 5 points extra, still might not get in.
You still have to have a competitve UAI. It depends on the number of EAS applicants for your course, and I guess it might differ withing different universities.
Also, If whole schools are on the sceme, then the scheme itself must be pretty competitive, with a lot of applicants, so it doesnt guarantee entry, we still have to sit and stress with everyone else.
About 5 people got in frmo my school, for various reasons, and I went to a small private school.