Cricket Australia's (CA)National Selection Panel nominated the players, trimmed to 17 from last year's 25, based on their "form over the past 12 months."
Other criteria included their "likelihood of Australian selection over the next 12 months taking into account the formats of cricket Australia plays, balance of the side and the need to ensure the future development of the Test and limited overs teams."
The weighting for Tests outweighs ODI, which outweighs Twenty20. The weight of Tests was also strengthened following the Australian Team Performance Review outcomes.
Commenting on the CA contract list for 2012-13, National Selector John Inverarity said, "Following the recommendations of the Australian Team Performance Review and negotiations between CA and the ACA, the NSP today announces a Contract List of 17 players, a reduction in numbers of nearly one-third from the 25 of recent years.
"Naming just 17 players initially, with the ability to upgrade others, as and when performance warrants, ensures a tighter alignment between current performance, recognition and reward," he added.
Among the players who have missed out on a contract is Ed Cowan, who has been Australia's opener since the Boxing Day Test against India last year. Former captain Ricky Ponting, who has been displaying inconsistent form, has been retained in the top-17. MORE