For anyone else doing this, maybe worthwhile following the 'advice' and submitting registered mail packet to have the docs sent back.
Even going today (10 days after submitting the passports/PIO) at pm I was told to 'wait' (not that that should have surprised me! Some half-hour or more later I eventually got the endorsed PIO back with old new passports.
If you are notifying us of a new name on your passport, you should provide official evidence of the name change, for example certified copies of the name change certificate or marriage certificate.
For details, click here India (IN) Additional Information: - The passport number is recorded on the Person of Indian Origin (PIO) Card.You must notify us of a change in address if you have an undecided application and you intend to change your residential address for 14 days or more.You should advise us of a change of address while you hold a visa to assist us to contact you if required.Only Master card or Visa cards issued in Australia are acceptable Emergency Processing Fees: Issued for Business travellers, requiring to travel in an emergency or in the case of travel required for an urgent medical condition /death of a close relative a Consular Emergency fee of 1 VFS Global Emergency Processing Fee of (inclusive of GST) is applicable over an above standard fees.Payment Instructions: Preferred mode of payment At the application centre by Credit Card/EFTPOS At the application centre in Cash Other Payment modes Fees can be paid by Money Order/Postal Order, in favour of, “VFS Services Australia Pty Ltd” For all type of applications, same day pick up requests will incur an additional VFS Global Emergency Processing Fee of Au.00 (inclusive of GST) including interim/complete withdrawal cases.