Yes, but not as easy a defense as in the US. Since Ridgeway v The Queen ('95).

However, entrapment as a legal defense is less an overall a defense and rather a reason to exclude a particular piece of evidence from the case. There will also likely be no punishment for those who attempted the entrapment, even if the evidence ends up being excluded.

Australia does have other mechanisms by which something similar may sometimes be used, such as conflict of interest (such as in the Lawyer X trials) are more appropriate defenses, where the US may simply use entrapment.