Mr Fraser, who is also a former Treasury Secretary, said hehoped the soon-to-be-released Henry tax review would turn to fiscalpolicy to supplement monetary policy.
He says he will continue to push for changes to capital gainstaxation and negative gearing as a way to more equally distributethe nation`s taxation burden.
"I helped persuade Paul Keating to move in that (negativegearing reform) direction once and it was in place for a short timebefore it was rescinded and Paul Keating hasn`t forgiven me," MrFraser told an economic symposium hosted by the Whitlam Instituteyesterday .
"I`m hoping that the (Henry) tax review will start by producinga fairer tax system.
"Fairness, it seems to me, is something that everyone pays lipservice to and then forgets to do much about."
He said he had "old fashioned views" about fairness and taxsystems.
"One element of fairness to me is that a dollar is a dollar ofincome, whether it`s a dollar earned through wages, or throughcapital gains," he said.
Preferable differential rates between capital gains tax andincome tax were "unfair," he said.
"It encourages people, those who can, to channel more of theirincome through capital gains than the income tax structuregenerally."
Mr Fraser said an element of progressivity in the tax system wasessential for fairness.
"Over the years this has been diminished," he said.
"Marginal rates have been coming down, GST has been put in placewhich is if anything regressive.
"So there has been some diminution of that progressive elementin the tax system."
Current Treasury Secretary Ken Henry is conducting a review ofAustralia`s tax system and due to present his findings to the Federal Government in December.
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