The game - Australia's Big Bash - will be played next Sunday at the Sydney Cricket Ground (SCG).
It is also set to feature federal Environment Minister Peter Garrett, boxer Anthony Mundine and former Test stars Glenn McGrath and Michael Slater.
The former Midnight Oil frontman's great grandfather, Tom Garrett, played 19 Tests for Australia between 1877 and 1888.
Current Australian players David Warner, Nathan Bracken, Moises Henriques, Lisa Sthelaker and Ellyse Perry will also feature in the yet to be finalised teams.
Cricket NSW chief executive David Gilbert said Waugh and Taylor immediately agreed to play when he put the proposition to them.
"They said yes straight away," Mr Gilbert said in a statement.
"Once again, they are leading the way, just as they did in their playing days, and the response from players, past and present, plus the personalities has been fantastic."
Sydney Rooster NRL players Braith Anasta and Anthony Minichiello Waratah players Phil Waugh, Lote Tuqiri and the retired Matthew Burke will also feature.
Sydney Swans forward Barry Hall has agreed to play, as too will singer Shannon Noll, former world surfing champion Mick Fanning and current surfer Joel Parkinson.
Organisers hope the match will raise $500,000 for the Red Cross Victorian Bushfire Appeal, with SCG staff donating their services.
The Twenty20 match, to be staged by the SCG Trust in partnership with Cricket Australia, will start at 5pm (AEDT). Tickets will go on sale from Monday.