You can craft christmas things (like a christmas tree or a christmas rug. -> you can get christmas clothes and other stuff if you make those thinngs). But you need those candy canes to craft them. You can craft those things in "Special Craft"
If you are using a jailbroken iPhone, you can't run the game even you downloaded it from the App Store with an AU Apple ID. Since the game is online, they can detect if you are using a modified system. Try using tsprotector+ from Cydia.