I don't know this store. I don't know how things work in Australia, but I would push for an exchange as the device has a manufacture error. I would be nice and push them a bit. If that doesn't work, make a scene. It's retarded to do this, but for some managers its the only way to get things, as they want you to stop and leave. Not always, but better have your cards ready.
If it is an online store. I would call them and push them if they refuse at first. Maybe ask their manager or supervisor. If that doesn't work, then pull a what is called at the consumer level: carpet bomb e-mail. That means search every e-mail address, related or not, that you can find from the company. Then find who is the owner(s) of the company, look under LinkedIn for employees there. If you can't find e-mails, but have names, guess their e-mail. For example:
[email protected],
[email protected],
[email protected]... And you write a detail e-mail, with pictures, your address, your e-mail address in the letter (in the case they print it, and give it to someone and your e-mail doesn't show), include your phone number as well. Be nice, polite and professional. Calm too. And write full details of what your ordered, when, when you received it (including tracking number or package, and order number), how the device is defective, and say who you talked to, and when (very important), and your case number, detailing the conversation, and how they could not resolve it.
This is the ultimate move. If that doesn't work, go to their social media, and complain, so that all can see. And if that fails, call your local news. They usually starve for local news. So, you'll get your moment to fame, and they'll be so embarrassed, and it will be so very bad publicity for them, they'll move.
More info:
http://consumerist.com/2007/05/11/how-to-launch-an-executive-email-carpet-bomb/
And if that fails... small claim court. They have to get a lawyer, which will cost a lot more then your SP2, you don't as its small claims only, so simply filing it to the court, is usually enough for them to replace the device by pleading guilty immediately, the moment they get the court papers. If not, and willing to waste their money, or the owner is willing to fight you. I don't know Australian laws, but here in Canada and U.S, the judge will be: especially that you show that you did the above to contact them and was ignored or they refused, will automatically use common sense and force them to replace your device. PLUS, because they will loose, they'll have to pay the court fees.