Tax has been fixing past problems: Hockey

Treasurer Joe Hockey has officially launched the Abbot government's discussion paper on taxation at an ACOSS conference in Melbourne.

Federal finances and the NSW election will dominate the final week of parliament before the budget. (AAP)

Treasurer Joe Hockey says for too long Australia's tax system has been about fixing past problems rather than creating a system for the future.

At the official launch of the government's discussion paper on taxation, Mr Hockey said taxation had been "reactive not proactive".

"We need to future proof our standard of living and critical to that is having the right structures in place including a modern taxation system," he told an ACOSS conference in Melbourne on Monday.