The side led by Jason Sangha also includes Will Sutherland, son of Cricket Australia's (CA) chief executive James Sutherland. Sutherland Jr is the vice-captain of the side.
In 2016, Waugh had hit an unbeaten hundred in the final of the Under-17 National Championships, and earlier this year represented Australia U-19s in a one-day series against Sri Lanka's youth side.
Former Australia pacer Ryan Harris will coach the U-19 side, while former opener Chris Rogers will assist him.
Australia are slotted into Group B, and will open their campaign against India on January 14 in Mount Maunganui. The other teams in Group B are Zimbabwe and Papua New Guinea.
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Australia are aiming to win their first title since the Mitchell Marsh-led side claimed the title in 2010, and the 18 -year-old Sangha will have the services of paceman Xavier Bartlett, Max Bryant, Param Uppal, among others, during the campaign.
Australia's National Talent Manager Greg Chappell said: "This is a very exciting squad and there is some exceptional talent within this group. We have got a good spread of skills through the squad."