Summary#

This bill changes how the federal government counts income when it sets Old Age Security top-ups for low‑income seniors. It excludes specific COVID‑19 emergency benefits from the income used to calculate the Guaranteed Income Supplement (GIS) and the Allowance for months after June 2022 (Bill, s. 1 adding OAS Act s.2(c.1)). The goal is to prevent these temporary benefits from lowering seniors’ GIS or Allowance.

• Excludes payments under the CERB, certain EI emergency benefits (Part VIII.4), the Canada Recovery Benefits Act, and the Canada Worker Lockdown Benefit Act from GIS/Allowance income for months after June 2022 (Bill, s. 1).
• Applies to GIS (for low‑income seniors 65+) and the Allowance/Allowance for the Survivor (for low‑income spouses or survivors aged 60–64) (OAS Act).
• Prevents GIS/Allowance reductions that would have happened because these COVID‑19 benefits were counted as income.
• Does not change income tax rules; the change applies only to the OAS/GIS program’s income definition (Bill, s. 1).
• Does not provide retroactive relief for months before July 2022 (Bill, s. 1).

What it means for you#

• Households (low‑income seniors 65+ receiving GIS)

  • Starting with payments for July 2022 and later, Service Canada will ignore amounts you received from the listed COVID‑19 benefit programs when calculating your GIS. Your GIS may be higher than it would have been under prior rules (Bill, s. 1).
  • You do not need to apply for this exclusion; it is built into the calculation of GIS after June 2022 (Bill, s. 1).

• Spouses/partners and survivors aged 60–64 (receiving the Allowance or Allowance for the Survivor)

  • The same exclusion applies. Listed COVID‑19 benefits will not count as income in setting your Allowance for months after June 2022 (Bill, s. 1).

• New GIS/Allowance applicants after June 2022

  • If your prior‑year income included these COVID‑19 benefits, they will be deducted from the income used to assess your eligibility and payment amount for months after June 2022 (Bill, s. 1).

• Seniors who did not receive these COVID‑19 benefits

  • No change to how your income is assessed for GIS/Allowance.

• All recipients

  • Tax reporting does not change. These benefits may still be taxable for income tax, but the change here is only for GIS/Allowance calculations under the Old Age Security Act (Bill, s. 1).

Expenses#

Estimated net cost: Data unavailable.

• The bill requires the government to ignore specific COVID‑19 benefits when calculating GIS/Allowance after June 2022, which increases statutory spending on OAS top‑ups relative to prior rules. No fiscal note or official cost estimate is included in the bill text (Bill, preamble; s. 1).
• Explicit appropriations in dollars are not stated. Total cost depends on how many GIS/Allowance recipients received the listed COVID‑19 benefits and the amounts involved. Data unavailable.

Proponents' View#

• Protects low‑income seniors from unintended benefit cuts by ensuring temporary COVID‑19 benefits do not reduce GIS/Allowance after June 2022 (Bill, s. 1).
• Provides a clear rule across Canada by listing the exact programs to be excluded, reducing confusion for recipients (Bill, s. 1).
• Targets relief to seniors and near‑seniors by applying only within the Old Age Security system (GIS and Allowances), limiting scope and exposure (Bill, s. 1).
• Prospective application avoids repeated one‑off fixes and gives income stability for benefit months July 2022 onward (Bill, s. 1).

Opponents' View#

• Increases program spending without a published cap or estimate; Parliament is asked to approve a change with no official cost figure in the bill text. Data unavailable.
• Creates unequal treatment: employment or other taxable income still reduces GIS, but listed COVID‑19 benefits do not, raising fairness concerns among seniors with similar total incomes but different sources (Bill, s. 1).
• Sets a precedent for excluding other income types from means tests, which could invite future carve‑outs and add complexity (Bill, s. 1).
• Provides no retroactive relief within this bill for months before July 2022, leaving earlier reductions to be addressed separately, if at all (Bill, s. 1).