Western Australia is poised to reap more financial benefits once it decides to support the federal-sponsored national health reform plan and the same goes with all the other states.

This according to Federal Special Minister of State Gary Gray in reaction to Western Australian Premier Colin Barnett continued refusal to sign up to the reform plan despite the agreement already signalled by Australia's other premiers.

Formally fashioned out earlier in April by the Council of Australian Governments (COAG), Mr Barnett argued that once the WA state government agrees to sign up to the national health and hospital reform measures, it would mean the loss of up to 30 percent of its remaining GST revenue.

The WA premier maintained that such stringent requirement would eventually undermine the state and he found an ally on WA Labor leader who also voiced out is opposition to the health reform plan, declaring that he too would refuse to sign up on the plan.

Yet Mr Gray countered that even if Western Australia would be asked to give up as much 30 percent of its GST, in return the state would be getting more than $2 billion from its current allotment once it tosses its support behind the health plan.

Upon its immediate sign on, the WA federal MP said that the state government would get an initial $351 million out of the health plan that could be utilised to fund elective surgery and improve emergency departments and sub-acute care.

For the loss of a mere 30 percent of its GST, Mr Gray emphasised that state governments would acquire greater benefits as the federal government would take over from much of their responsibilities on health care costs.

This is quite significant for Australia's state authorities, he stressed, in light of latest indications that showed "healthcare costs increasing by around 10 per cent each year and GST revenue rising by only 6 per cent each year."

Passing off from the health reform plan would result to an estimated loss of more than $1.6 billion in health budget over a span of five years starting off in 2014, according to Mr Gray, as he asserted that by walking away from the plan, Mr Barnett "is denying Western Australians more than $2 billion funding for vital services."