well thats what i thought would have happened.. it was only $5 but i think its the principle of the thing.. if the situation had been reversed i would've refunded half the amount..
It was sent via regular mail, so no insurance etc.. not worth spend another $3 on a $5 item..
Auspost are sneaky like that.. If you do choose their 'insurance', it is implied that anything that is sent with them is insured for breakages.. however, they will only pay out if the box has been near enough to destroyed. if something was fragile inside and it was dropped but no physical box damage, auspost refuse to pay up. a guy on another forum sent a $900 lens, got insurance, ending up being broken on the other side.. but since there was no box damage, auspost wriggled out of it with a 'insuffiently packed'.. which is rubbish, it was packed properly with pics to prove it..
edit: I guess they just like to let people assume that they're covered, as the wording implies any breakages, but relatively few people actually read the terms & conditions until its too late.. auspost insurance really isn't worth the paper its written on..