Despite two days of heavy COAG negotiations, Western Australia has thrown a spanner in the so-called national health reform plan by refusing to sign up to the Rudd government's proposal.
WA Premier Colin Barnett says the intergovernmental agreement (IGA) signed by the remaining seven states and territories doesn't work without all eight on-board.
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Victorian counterpart John Brumby conceded there was uncertainty about the legalities of the IGA.
"The legal advice is probably unclear on that point that Colin makes," Mr Brumby told ABC Radio on Wednesday.
"I think there will need to be legislative change to give effect to this and probably safeguard the interests of the states and of the Commonwealth."
Mr Barnett and Mr Rudd believe an agreement can still be reached on their GST sticking point and will continue discussions in the lead-up to the reform kick-off on July 1.
