Clause 269 is designed to ensure that the $500 one-time payment that is being proposed for the OAS pensioners aged 75 and older would not be included as income for GIS purposes. The one-time payment would be considered taxable income under the Income Tax Act. That would normally count as income for GIS.
Exempting this payment from the definition of income will ensure that the one-time payment made in August, 2021, will be treated similar to OAS and will not reduce a person's GIS beginning in July 2022.