We carry out a Lie group analysis of the Sachs equations for a time-dependent axisymmetric non-rotating spacetime in which the Ricci tensor vanishes. These equations, which are the first two members of the set of Newman-Penrose equations, define the characteristic initial-value problem for the spacetime. We find that the equations admit a five-dimensional equivalence Lie algebra. The initial value function that allows the equations to admit a non-trivial Lie symmetry separates into three disjoint equivalence classes.