Prime Minister Tony Abbott says other states should "take heart" from the decision to provide Western Australia with additional federal funding, saying the state is in a difficult and unprecedented position.
The commonwealth has brought forward $499 million in cash for WA roads projects to recognise the state's difficulties with a new carve-up formula for GST revenue.
Other states have said WA shouldn't get extra money until it undertakes economic reform, but Mr Abbott has told reporters in Perth on Wednesday the state faces revenue issues never before seen by any state and has, in many respects, led the country on fundamental economic reform.
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