Labuschagne, who hasn't scored a Test century since July 2023 and made just 35 runs in three innings against Bangladesh, has been included in a 15-man squad for next month's three-Test series.
Questions have been raised about whether the 32-year-old should keep his spot considering his middling form and the fact that he was dropped from the ODI squad for the upcoming series against South Africa and Zimbabwe.
But on Monday, Chair of Selectors George Bailey doubled down on the decision to retain him for the Test tour.
"(We're) not shying away from the fact that we'd like some more runs from Marn ... But we're also confident that he can still make a positive contribution to that squad," Bailey said.
"Our batting group in its entirety, not just Marn, probably hasn't been functioning as successfully as we would like."
When asked if the South Africa series would be Labuschagne's last chance to prove himself, Bailey dodged the question.
"No, I wouldn't say that. But again, it's a hypothetical, isn't it?" he said.
"I don't really know how to answer that in terms of trying to predict what will happen in the future."
Steve Smith and Travis Head have been floated as options to usurp Labuschagne's No.3 position in the batting order, and Bailey kept the door ajar for a change.
Selectors also added Cooper Connolly and the Chair said he was chosen mainly for his batting but could bowl, despite South Africa's reputation as a difficult place for spinners to thrive.
"I think he will be able to (bat at No.3 as well). Whether that's now, whether that's in the future," Bailey said.
"He's still so young in his first-class career, isn't he? ... I think he's got a game that's well suited to the middle order.
"But no doubt, as he matures and continues to grow his game, there's a capacity where he could bat further up the order."
Matthew Kuhnemann and Michael Neser have also received a call-up after missing the Bangladesh series.
Neser has been battling a calf strain sustained in August, and Bailey said he was tracking well, although he isn't at 100 per cent.
Josh Inglis is the spare batsman in the team, with Matthew Renshaw to be given an extended stretch as an opening batsman after replacing the axed Jake Weatherald for the second Test against Bangladesh.
The South African series starts in Durban on October 9, and it will be Australia's first Test tour in South Africa since the infamous 2018 ball-tampering scandal.
The second Test in Gqeberha begins on October 18, with the series finale in Cape Town from October 27.
AUSTRALIA SQUAD:
Pat Cummins (capt), Scott Boland, Alex Carey, Cooper Connolly,
Cameron Green, Josh Hazlewood, Travis Head, Josh Inglis, Matthew Kuhnemann, Marnus Labuschagne, Nathan Lyon, Michael Neser, Matthew Renshaw, Steve Smith, Mitchell Starc, Beau Webster.
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