Yanyuwa woman Ms McCarthy has been selected to replace Northern Territory Labor's number one senate spot, replacing outgoing Nova Peris, Labor said in a statement on Monday.
"She has been a fierce advocate for her community of Borroloola and will bring that same passion to representing the Northern Territory in the Federal Parliament," Labor says.
In 2005, Ms McCarthy was elected to the NT Assembly as the Member for Arnhem. She was re-elected unopposed in 2008 and served as minister for children and families, and child protection.
"Labor thanks the strong field of candidates who nominated for this vacancy and once again acknowledges the pioneering contribution of Nova Peris," the statement says.
NT local Pat Honan occupies the number two spot on Labor's senate ticket.
The Labor senate candidates will run against the Country Liberal Party's Nigel Scullion and Jenni Lillis.