Four players - Joe Wheeler (concussion), Dan Pryor (concussion), Luke Whitelock (knee) and Patrick Osborne (hip) - who started last week's match against the Lions have been ruled out through injury.
Wheeler has been replaced by Tom Franklin in the second row, while Liam Squire replaces Pryor in the No 8 jersey.
Squire was down to start last week's match at the back of the scrum, but was a late scratching due to an illness.
Whitelock was forced off the paddock last week with a medial ligament strain in his knee and has been replaced by Elliot Dixon.
Ryan Tongia makes his first appearance of the season on the wing, replacing Osborne in the only change to the backline.
Lock Mark Reddish has recovered from a shoulder injury and has been named in the match-day team for the first time this season
Another five players - Waisake Naholo (leg), Marty Banks (knee), Fumiaki Tanaka (calf), Tei Walden (concussion) and Josh Hohneck (head cut) - were also unavailable for selection.
But Joseph has still managed to name a strong side to take on the 2014 champions in a rematch of last year's semifinal.
Three years after making his debut for the side, hooker Liam Coltman will start in his 50th game for the Highlanders.
Highlanders v Waratahs, Sydney, Friday, 9.40pm
Highlanders: Ben Smith (co-captain), Matt Faddes, Malakai Fekitoa, Rob Thompson, Ryan Tongia, Lima Sopoaga, Aaron Smith, Liam Squire, Shane Christie (co-captain), Elliot Dixon, Tom Franklin, Alex Ainley, Siosiua Halanukonuka, Liam Coltman, Brendon Edmonds. Reserves: Ash Dixon, Daniel Leinert-Brown, Ross Geldenhuys, Mark Reddish, Gareth Evans, Josh Renton, Hayden Parker, Jason Emery.Waratahs: Israel Folau, Matt Carraro, Rob Horne, David Horwitz, Zac Guildford, Kurtley Beale, Nick Phipps, Wycliff Palu, Michael Hooper (captain), David Dennis, Will Skelton, Dean Mumm, Angus Ta'avao, Tolu Latu, Paddy Ryan. Reserves: Hugh Roach, Jeremy Tilse, Tom Robertson, Sam Lousi, Jed Holloway, Jack Dempsey, Matt Lucas, Reece Robinson.
