2016 Olympics is a long way away so not sure you could lock in a team yet. I would prefer it if Basketball Australia did the same thing USA do and name a squad of players who will be considered for the games. If you need other players based on team need you can add them to the squad (like this year with Rudy Gay, Miles Plumlee). But I think having a set squad each off season to work together and play other nations in practice games would build the team work.
If I were to pick a 25 man squad to go train for Rio I would choose
PG - Mills / Delly / Exum / Gibson / Greenwood
SG - Broekhoff / Goulding / Drmic / Gliddon / Steindl
SF - Ingles / Newley / Simmons / Creek / Blanchfield
PF - Baynes / Bairstow / Motum / Thon Maker / Dan Johnson
C - Bogut / Ogilvy / Maric / Jawai / Nevill
I would say Isaac Humphries, Jack McVeigh, Deng Adel and Jonah Bolden are too young to be considered for 2016 and would miss the squad with Dante, Simmons and Thon Maker being the only really juniors in the squad.
All these players would be too old to be bench warmers at the games: Damian Martin, Steven Markovic, Rhys Martin, Ben Madgen, Lucas Walker, David Barlow, Mark Worthington, Jesse Wagstaff, Shawn Redhage, Matt Knights, Anthony Petrie, Alex Loughton, Oscar Forman, David Andersen, Daniel Kickert, Cam Tragardh, Luke Schenscher and Larry Davidson.