No way. I agree with the buying a unit/flat for them to rent cheaply so that their work doesn't take away from their study time. Parents could perhaps pay some towards their HECS bills or the like to soften the blow once they graduate, but not just to give them money with no strings attached?
Will they have total control over the money, or will there be some sort of caveat placed by the parents?
I think it's a bit too young and that they should have a go themselves, if they save a deposit for a house and need a bit of help then then by all means.
If the parents want to live in a caravan then go for it, but invest their hard-earned money a bit more securely.