SOD is actually only relevant to the delivery address, not the name on the package - there is another Australia Post service (Person to person) whereby only the addressee named on the package can sign for the package, but with SOD, anyone who is either at the address, or has ID to show they live at that address (or otherwise have the authority to collect the package), can collect and/or sign for it, so then the actual name on the package won't hinder anything. 

In other words, SOD is for the address, Person to Person is for the name.

Edit: just wanted to clarify - when I say "won't hinder anything", I'm referring specifically to the delivery of the item. I can not say for sure if it will affect PayPal's Seller Protection.