I bought a microwave oven in 2013 and it was diagnosed as faulty by Harvey Norman recently. They are still selling the same microwave oven (same model number etc) but the price has gone up. Harvey Norman is refusing to replace with the identical item and have requested I pay the difference.
Is it normal? Is it fair?
Most warranty deals etc require you to be put back to the position you were originally. In this case, a working microwave. Be very surprised if that's legal. Price could have just as easily fallen (as would probably be more common for appliances)
Have a nosey around the Consumer Affairs website under Fair Trading Act.