Australia axe Wade, keep Paine as captain for South Africa Test tour
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Wade played all four games in the tense 2-1 home summer series loss to India, including two as makeshift opener in place of the injured David Warner.
But he managed just 173 from his eight innings, with some rash shots ultimately costing him his place in the side and seeing him replaced by Alex Carey as back-up wicketkeeper.
Wade was the main casualty from the India series, with the squad otherwise much the same.
Uncapped bowlers Sean Abbott, Michael Neser, and Mitchell Swepson are again included, with fellow quick Mark Steketee and Carey the only newcomers.
Paine had a sub-par series against India, particularly the last two Tests when he dropped a slew of chances and came under fire over his bowling changes, field placings and decisions on when to declare.
He was also fined for an expletive-laden rant at an umpire and forced to apologise after an ugly verbal tirade at India's Ravi Ashwin, all of which put his captaincy under the microscope.
- 'Wide of the mark' -
But National Selector Trevor Hohns insisted Paine was still the right man for the job.
"After a series that attracted so much global interest, it was inevitable there'd be scrutiny. But some of the commentary surrounding Tim and his position as Test captain has been wide of the mark."
The absence of several T20 regulars opened the door for some fresh faces to make the trip to New Zealand, with three uncapped players in the squad including teenage leg-spinner Tanveer Sangha.
The other rookies are opener and gloveman Josh Philippe and fast bowler Riley Meredith.
Paceman Jhye Richardson and Jason Behrendorff and spinner Ashton Agar make their return to Australian colours after lengthy injury layoffs.
Test squad for South Africa: Tim Paine (capt), Pat Cummins, Sean Abbott, Alex Carey, Cameron Green, Marcus Harris, Josh Hazlewood, Travis Head, Moises Henriques, Marnus Labuschagne, Nathan Lyon, Michael Neser, James Pattinson, Will Pucovski, Steve Smith, Mitchell Starc, Mark Steketee, Mitchell Swepson, David Warner
T20 squad for New Zealand: Aaron Finch (capt), Matthew Wade, Ashton Agar, Jason Behrendorff, Mitchell Marsh, Glenn Maxwell, Ben McDermott, Riley Meredith, Josh Philippe, Jhye Richardson, Kane Richardson, Daniel Sams, Tanveer Sangha, D'Arcy Short, Marcus Stoinis, Ashton Turner, Andrew Tye, Adam Zampa