Local letters will also still be processed in Ballarat and not moved to the Dandenong Mailing Centre, which the Communication Workers Union warned in September could have cost up to 30 jobs.

However, some staff will still be affected by the move of non-local mail sorting to Melbourne, though the number is not yet known.

Communication Workers Union branch secretary Joan Doyle said they were still concerned about the proposed changes to non-local processing.

“It doesn’t make any sense at all. If you are streaming it, you might as well sort it,” Ms Doyle said.

“We don’t think the verdict is out on what they are going to do yet but at least progress is being made.”

Ms Doyle also said the union would be closely watching progress on the issue in the new year.

But Australia Post spokeswoman Rachel Brennan said it was committed to maintaining a “viable and sustainable letters service” in all Victorian regional areas.

“There will be no changes to current local delivery services, which will remain next day regardless of where they are posted,” Ms Brennan said.

“This mail will continue to be processed locally and delivered next day, ensuring that rural and regional areas receive the same mail delivery service as metropolitan areas.

“Processing and delivery of non-local country mail from these areas will be aligned to the current legislated service requirements.”

Corangamite MP Sarah Henderson challenged the proposal to change next-day deliveries, claiming it would put Australia Post in breach of its mandated Community Service Obligations.

Section six of the CSO states “local mail lodged in any regional city or town for local delivery within that city or town must be delivered the next day”.

“The delivery of non-local mail will take a minimum of two days but this timeframe meets Australia Post’s Community Service Obligations,” Ms Henderson said.

“I have been a strong local voice for better postal services for the past 12 months and I am delighted with the outcome.”

fiona.henderson@fairfaxmedia.com.au