Sure, it happened back in '84 but it's still funny :D
"In fact, Rudd's Mandarin-speaking ability has come a long way since his early days as a diplomat in Beijing. In 1984, when translating then Ambassador Ross Garnaut's remarks to a Chinese delegation that "Australia and China were enjoying a great closeness in their relationship", Rudd is reported to have said "Australia and China are enjoying simultaneous orgasms in their relationship".
Hat tip to Danwei.
Now, if only we could find a recording...