Just because something is made available on the internet doesn't mean it is not protected by copyright! Everything on the internet is covered by copyright and can only be used as licensed by the copyright owner or permitted under copyright legislation.
Text and graphic material
You can copy material off the internet under the Part VB educational statutory licence as long as the material complies with the Part VB copying limits and notice requirements that apply to electronic material for books and periodical articles and images.
You can also copy Australian broadcast podcasts for educational purposes under Part VA. Other audio-visual material such as animation or non-broadcast podcasts cannot be copied from the internet under the statutory licences. If you want to use this material you will need to obtain permission from the copyright owner, which might be indicated on the web site.
You can provide students with a link to legally available material on the internet, however you must not link to material on the internet that knowingly infringes copyright (such as may be available on peer-to-peer networks or unauthorised video sharing sites).
If you are unsure about whether you can copy material off the internet using one of the statutory licences, or if the permission given to you by the owner is sufficient enough, then it's best to provide students with the URL to the material.
Embedding Videos (e.g. YouTube videos)
When a video is embedded it is "ported" from the original server (e.g. YouTube). Therefore, no original material is reproduced or communicated from the server where the script to "port" the video is hosted.
You can embed videos in Moodle. However, you must not embed material on the internet that knowingly infringes copyright such as video content on unauthorised video sharing sites.