A. Fat and cholesterol are two separate components of food. Only animal foods such as prawns, eggs, meat (especially organ meats such as liver, kidney and brains) and milk contain cholesterol, while plant-based foods do not.
Australian food regulations limit a claim saying 'Cholesterol-free' or 'No cholesterol' to only those foods that have negligible cholesterol AND are also low in fat (ie less than 3 per cent fat) or low in saturated fat (ie less than 20 per cent saturated fats). Remember, it's generally the saturated fat that needs to be limited, not the cholesterol.
Margarines, salad dressings, mayonnaise and oils – which are high in fat – can be free of cholesterol, if they're based on a suitable vegetable oil such as canola, olive or sunflower. However, be wary of No cholesterol claims on foods like potato crisps, snack foods, biscuits, fries and fried foods.
Check the type of oil that's used. If the label simply lists VEGETABLE OIL, it's most likely to be palm oil, which is cheap, saturated and not a good choice.
If it names the type of oil eg "Cooked in sunflower oil" then you know what type of oil you're getting.