"I believe Smith will captain Australia again. I was on the Cricket Australia board that determined the penalties for Smith, David Warner and Cameron Bancroft over the events of Cape Town and have no doubt he will be a better leader next time around because of the very harsh lessons he learnt," Taylor said in a column for the Sydney Morning Herald.
"To me it's not a matter of whether he (Smith) becomes captain again on April 1. It doesn't have to happen that quickly," he added.
"But I'd like to think when (Tim) Paine is finished as Test captain -- whether that's in six months' time or two or three years -- he would be a candidate to lead the side again."
Meanwhile, another Aussie former captain, Ian Chappell, has also backed Smith to assume the role.