Yes, of course, why wouldn't you?... Look, there's no regulation that forces you to use hosting in India, unless, of course, the project handles sensitive or regulated data (which I doubt)...
Look, the only thing you need to keep in mind is the following:
If the client needs faster loading times for local visitors, a server in India or a nearby region will offer lower latency.
If the site will handle patient records or medical or critical information, you'll need to comply with the client's data storage regulations.
But for a business website, or a hospital website with public information, hosting it in Australia is perfectly acceptable. Just make sure the client understands the latency difference.