South Gippsland's postmasters and residents are hoping a Senate inquiry will finally put an end to fears for the future of Australia's regional post offices, after concerns that proposals to strip back services could have devastating consequences for small towns.

Toora Post Office licensee John Ross says the biggest threat is the potential loss of banking and bill payment services, which have become increasingly important as banks continue to disappear from country communities.

"What I think they're trying to do is take the banking away from us, which will be a tragedy for the smaller towns," Mr Ross said. "Most of the people in the smaller towns haven't got banks anymore. We are the focal point for the banking, and also the bill paying."

He said towns like Toora have ageing populations, with many residents unable to travel long distances or confidently use online services.

"If they take that away, they're taking it away from people who don't know how to use phones, don't know how to use computers. Farmers are still using cheques. They still need this system."

Mr Ross warned a parcel-only model would leave many licensed post offices financially unviable.

"They need that banking to keep afloat. They need the bill paying to keep afloat... If they take that away, it's like taking the pub away. It's the centre of the town that they're taking away."

Adding to the frustration has been the lack of publicity surrounding the Senate inquiry itself.

Mr Ross said he only became aware of the inquiry about two weeks before submissions closed, leaving little time for postmasters or communities to encourage people to have their say.

"That's not good enough for people who have put their money and life into these businesses," he said, questioning why the inquiry had not been better promoted while acknowledging many older residents would struggle with the online submission process.

Despite the late notice, community members have rallied. Foster resident Maddy Volkov said she had spoken with neighbours and was encouraged by the response.

"There have been a lot of submissions according to my chats with people and messages from my last post. Such important work to keep our PO going. Thanks to all that have helped and made sure our voice is heard!"

Others, including Venus Bay resident Deb Warr, have also lodged heartfelt submissions, describing how the Tarwin Lower Post Office holds mail and parcels for residents without local post office boxes and warning that losing the service would leave some facing an 80-kilometre round trip to access a larger post office.

For communities across the Prom Coast, the hope is that the inquiry will recognise regional post offices as far more than places to collect parcels. They are banking hubs, bill payment centres, trusted community meeting places and, for many older Australians, an essential lifeline that cannot simply be replaced by parcel lockers or online services. David Barrett