Cummins will miss the Big Bash League opener because of injury concerns in the lead-up to the Boxing Day Test, but his manager Neil Maxwell yesterday confirmed the 18-year-old quick would nominate for the IPL auction.
However, Waugh has warned Cummins not to prioritise the IPL over playing for his country.
"The priority has got to be playing for Australia, the baggy green is number one and everything else slots in underneath that," Waugh was quoted as saying by 'AAP'.
"Obviously there's money to be made from the IPL, but I think as a young guy with his potential and his star quality, he's going to make a lot of money out of the game of cricket.
"And if his body is a little bit susceptible to injury at the moment his commitment has got to be playing for Australia first." While the decision is solely Cummins' to make, Waugh feels Cricket Australia (CA) and senior figures of the Australian team should be giving cautionary advice.
"The senior players, people in like Michael Clarke, Ricky Ponting and Justin Langer as the batting coach, these guys know the value and what it means to play for Australia and I am sure they will be in his ear."