Yes, you can drive with Bluetooth headphones connected to your phone or smart watch, provided you are not also breaching any of the Australian Road Rules under the Road Traffic Act 1961.
A driver may use a Bluetooth device provided the phone is not being held by the driver, and the use of the phone does not require the driver at any time, to press anything on the body of the phone or to otherwise manipulate any part of the body of the phone.
This includes touching, holding or resting the phone on their body. The driver can touch the Bluetooth earpiece or headphone while driving if necessary.
We remind everyone that you should not drive with anything that may cause you to be distracted from driving in a safe and correct manner – if you drive in a manner without due care and attention, you may be committing a criminal offence.
Rule 300(1) Australian Road Rules under Road Traffic Act 1961