Probably.If you look at google maps,there is only Shearwater no Shear Water so shouldn't be a problem.

You might want to fix that in your account settings anyway.

No, you won't have an problem because the package also has your postcode as a backup. In fact, I've received items in the past where my suburb had been omitted altogether and replaced with Brisbane which is 27km from here, yet there was no delay whatsoever because it had been addressed with my suburb's correct postcode.

I agree, I think the PO goes on Postcodes rather than the actual suburb/town.