The 31-year-old earned a Test call for the first time following his performances in the recent one-day series against India, which included an innings of 156 off 114 balls.
His preference over Doolan comes as a surprise in some quarters, with many believing that he will play a part later on in the series, but Inverarity says that the selectors were impressed by Bailey.
"We have included George Bailey in this lineup and are excited by what he can offer at Test level," Inverarity told reporters.
"George has shown outstanding international form over the past 20 months, including the recent limited-overs series in India. He is calm and composed and comes into the squad full of confidence.
"It was certainly discussed at great length. Of course the national selection panel have been in contact quite a bit over the last few weeks and that had a lot of discussion. Alex Doolan is a very highly regarded player in our eyes. But George Bailey has been in fantastic form with the bat."
The first Test gets underway in Brisbane next week.