(1) This section applies if:
(a) an entity makes a supply because it enters into or becomes a party to an agreement; and
(b) the agreement satisfies the requirements of subsections 721-25(1) and (2) of the * ITAA 1997 in relation to an existing or future * group liability of the * head company of a * consolidated group or * MEC group.
(2) The supply is not a * taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements.
(3) This section has effect despite section 9-5 (which is about what are taxable supplies).