Yes. The Copyright Act 1968 (Cth) permits the use of copyright material in exams and test questions where it is required for assessment purposes.
You may include: Text extracts (e.g. journal articles, book chapters, newspapers) and images and artistic works.
Generally, there are no restrictions on the amount used. This provision applies across all assessment formats, including in-person exams, online exams and take-home assessments.
This exception applies only for the purpose of conducting the exam or test. If exam materials are later reused (e.g. as practice exams or study resources), the exception no longer applies. In such cases, materials must comply with standard teaching copying limits, and access should be restricted to enrolled students.