Carey was drafted after Wade was the big omission in Wednesday’s Test squad announcement, but will still represent his country after being named vice-captain of the Twenty20 squad to tour New Zealand at the same time.
Queensland fast bowler Mark Steketee is the other new face in the squad, earning his first tour nod after strong Sheffield Shield and BBL form.
Travis Head has been retained, despite Wade pipping him for the No.5 position for the final two Tests against India, while Tim Paine is expected to wear the gloves after being retained as captain.
Wade was thrust into the unfamiliar role of opener to begin the Test series but earned criticism for some loose dismissals as he went 14 innings without a half-century as India shocked the hosts to win the series 2-1.
Head will compete with Moises Henriques and Carey, who struck a BBL century last week and could play as a specialist batsman, for the vacant middle-order spot.
Meanwhile Aaron Finch will captain the T20 side for the five-game series against the Black Caps.
He will lead an 18-man squad that includes emerging spinner Tanveer Sanga and fit-again fast bowler Jhye Richardson and will not change regardless of the status of the South African tour, which remains subject to suitable biosecurity arrangements.
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