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Ponting, contracted with the Kolkata Knight Riders in IPL, has opted out of the second season starting April, saying he wouldn't be able to give his all to the national team if he uses the two-week break to play in the cash-rich Twenty20 league.
Waugh backed Ponting's decision.
"Financially guys do pretty well these days, so I think it's a smart move. He's captain of Australia, a lot of responsibilities, it's going to be a tough 12 months coming up," Waugh was quoted as saying by 'Australian Associated Press', a news agency, in Melbourne.
"So, I think the two weeks will be invaluable for him to recharge the batteries, so it's a pretty good decision," he added.
Ponting is currently leading the Australian team on a tour of South Africa where they are scheduled to play three Tests followed by a five-match one-day series.
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