is it possible for australian to apply china visa in malaysia ?

According to the rule, an applicant holding a passport other than Malaysian passport should provide the original and a copy of his or her permanent residence or work permit which should be valid for at least 6 months and a copy of the passport first page (except for those who are visa or permit exempt for residing or working in the Malaysia). If there is any special request, you will be informed during submission.

If the Australian citizen is just a temporary visitor in Malaysia, the chance of getting a China visa is slim. It takes 4 working days for regular service, it takes 1 working day for rush service. A single entry visa is generally valid for 3 months.