I would firstly request a replacement under warranty. Then, when they refuse, say that you want a copy of their official complaint procedure so that you can follow consumer guidelines before contacting Fair Trading to have it sorted out. In my experience companies start to pay a bit more notice when they know you're not prepared to put up with this sort of rubbish and are quite willing to escalate the matter to Fair Trading for a resolution. Goods have to be fit for purpose under Australian Consumer law.
In the meantime document what you've done and take photos as proof of your claims.
Martin
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