Fraser made the comments on the Today show on Tuesday morning, after Kyrgios was accused of "tanking" in his Wimbledon loss against Frenchman Richard Gasquet.
"It's absolutely disgusting. I am so shocked to think that he went out there to play and he tanked," she told host Karl Stefanovic.
"They should be setting a better example for the younger generation... If they don't like it, go back to where their fathers or their parents came from. We don't need them here in this country if they act like that."