Lifestyle audits
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Individual Reform: Lifestyle audits 2026 - 2027

SARS' Specialised Audit Unit has been conducting lifestyle audits with more vigour recently and has completed several cases of taxpayer underpayment.

Lifestyle audits

Summary

According to government, as of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. Lifestyle audits for cabinet members and deputy ministers are under way, after several delays. The number of national departments - from 24 (in 2021/2022) to 36 (in 2022/2023), and provincial departments from 71 (in 2021/2022) to 89 (in 2022/2023) - who have started conducting lifestyle audits has improved. By March 2023, 7,856 members of the senior management service were subjected to lifestyle reviews (the first step to lifestyle audits) and of these, 157 cases were referred for lifestyle investigation by various departments (the second step).

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Is it working?

Implementation is under way but progress is slow. Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management members' reviews were referred for investigation in the 2023/24 financial year.

Actions

During the first year (2021/2022) of implementation, which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focus has been on capacitating investigators in the public service on how to conduct lifestyle investigations.

Are there plans?

The ultimate plan is to roll out audits even to municipal employees. Recently, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits.

Is it on the agenda?

In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.

Goals

Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.

Summary

According to government, as of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. The number of national departments that have started conducting lifestyle audits has improved – from 24 (in 2021/2022) to 36 (in 2022/2023), while the number of provincial departments conducting lifestyle audits has also improved – from 71 (in 2021/2022) to 89 (in 2022/2023). By March 2023, 7,856 members of the senior management service had been subjected to lifestyle reviews (the first step to lifestyle audits) and of these, 157 cases were referred for lifestyle investigation by various departments (the second step).

Canvas not supported.

Is it working?

Implementation is under way but progress is slow. Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management members' reviews were referred for investigation in the 2023/24 financial year.

Actions

During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focus has been on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training.

Are there plans?

The ultimate plan is to roll out audits to municipal employees. Recently, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits.

Is it on the agenda?

In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.

Goals

Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.

Summary

According to government, by July 2024, 147 out of 160 national and provincial departments had finalised their lifestyle audits. As of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. By March 2023, 7,856 members of the senior management service had been subjected to lifestyle reviews. The audit process includes three phases - lifestyle review, lifestyle investigation, and lifestyle audit(quantification and evaluation).

Canvas not supported.

Is it working?

Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management services members' (SMS) reviews were referred for investigation in the 2023/24 financial year. By September 2024, government reported that 191 SMS members - seven from national departments and 20 from provincial departments - were referred for investigations, including cases of conflicts of interest, unexplained wealth and conducting business with the state.

Actions

During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focus has been on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training.

Are there plans?

The ultimate plan is to roll out audits to municipal employees. Recently, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits. In Gauteng, premier Panyaza Lesufi announced in August 2024 that lifestyle audits of all HODs and CEOs of Gauteng Provincial Government agencies had been completed and will be made public. In October 2024, the Portfolio Committee on Police also recommended regular lifestyle audits for SAPS senior management.

Is it on the agenda?

In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.

Goals

Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.

Summary

Lifestyle audits are conducted by SARS' Specialised Audit unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.

Canvas not supported.

Is it working?

The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/3 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn.

Actions

SARS continues to use lifestyle audits to reconcile individuals' lifestyles with their tax declarations. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.

Are there plans?

The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined.

Is it on the agenda?

SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.

Goals

SARS conducts lifestyle audits on taxpayers it suspects have understated their taxes.

Summary

According to government, by July 2024, 147 out of 160 national and provincial departments had finalised their lifestyle audits. As of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. By March 2023, 7,856 members of the senior management service had been subjected to lifestyle reviews. The audit process includes three phases - lifestyle review, lifestyle investigation, and lifestyle audit(quantification and evaluation).

Canvas not supported.

Is it working?

Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management services members' (SMS) reviews were referred for investigation in the 2023/24 financial year. By September 2024, government reported that 191 SMS members - seven from national departments and 20 from provincial departments - were referred for investigations, including cases of conflicts of interest, unexplained wealth and conducting business with the state.

Actions

During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focused on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training. In March 2025, the Portfolio Committee on Public Service and Administration promised to investigate why lifestyle audits were not being carried out in some parts of government. The minister of police indicated earler in 2025 that lifestyle reviews are conducted annually for all SMS personnel within SAPS.

Are there plans?

The ultimate plan is to roll out audits to municipal employees. Last year, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits. In Gauteng, premier Panyaza Lesufi announced in August 2024 that lifestyle audits of all HODs and CEOs of Gauteng Provincial Government agencies had been completed and will be made public. In October 2024, the Portfolio Committee on Police also recommended regular lifestyle audits for SAPS senior management. In January 2025, the SIU recommended implementing lifestyle audits for supply chain management officials in the Cities of Tshwane and Johannesburg. The SIU also noted an increase to in requests for it to carry out lifestyle audits. Indeed, the Gauteng government indicated in March 2025 that its phased implementation will now move to senior officials who handle the province's finance with those in supply chain management being the first in line. These will be carried out by the SIU.

Is it on the agenda?

In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.

Goals

Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.

Summary

According to DPSA (July 2024), for the 2023/24 financial year, 147 out of 160 national and provincial departments had finalised their lifestyle audits. As of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. By March 2023, 7,856 members of the senior management service (SMS) had been subjected to lifestyle reviews. The audit process includes three phases - lifestyle review, lifestyle investigation, and lifestyle audit(quantification and evaluation).

Canvas not supported.

Is it working?

Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. DPSA indicated in July 2024 that for 2023/24, 191 senior management service reviews (97 in national departments and 94 in provincial departments) were referred for investigation by their departments. According to the Presidency, in 2024 seven national departments and 23 provincial departments referred cases for investigation. In its 2024/2025 report, the Gauteng Ethics Advisory Council revealed that of the 19 audited directors-general, heads of departments and CEOs of Gauteng provincial entities, 37% were classified as high risk or failed the assessment,16% were medium risk and 47% low risk. As a result, Premier Panyaza has dismissed three HODs from their positions for failing lifestyle audits.

Actions

During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focused on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training. In March 2025, the Portfolio Committee on Public Service and Administration promised to investigate why lifestyle audits were not being carried out in some parts of government. The minister of police indicated earlier in 2025 that lifestyle reviews are conducted annually for all SMS personnel within SAPS. President Ramaphosa recently revealed that for 2024/25, members of the executive of the seventh administration have all consented to lifestyle audits.

Are there plans?

With plans for national and provincial level lifestyle audits drawn up, the next step is to roll out audits to municipal employees. Last year, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits. In January 2025, the SIU recommended implementing lifestyle audits for supply chain management officials in the Cities of Tshwane and Johannesburg. The SIU also noted an increase to in requests for it to carry out lifestyle audits.

Is it on the agenda?

In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.

Goals

Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.

Summary

Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly targeting those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.

Canvas not supported.

Is it working?

The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue. In 2024/25, SARS completed 237 lifestyle audit cases valued at R1.8bn. The Specialised Audit Unit completed 3,757 broader audit cases, resulting in assessments amounting to R46bn.

Actions

SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.

Are there plans?

Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.

Is it on the agenda?

Part of SARS' strategy to boost tax revenue through increased compliance. Lifestyle audits are in effect.

Goals

To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.

Summary

Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly targeting those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.

Canvas not supported.

Is it working?

The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue. In 2024/25, SARS completed 237 lifestyle audit cases valued at R1.8bn. The Specialised Audit Unit completed 3,757 broader audit cases, resulting in assessments amounting to R46bn.

Actions

SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.

Are there plans?

Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.

Is it on the agenda?

Part of SARS' strategy to boost tax revenue through increased compliance. Lifestyle audits are in effect.

Goals

To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.

Summary

Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly targeting those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.

Canvas not supported.

Is it working?

The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue. In 2024/25, SARS completed 237 lifestyle audit cases valued at R1.8bn. The Specialised Audit Unit completed 3,757 broader audit cases, resulting in assessments amounting to R46bn.

Actions

SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.

Are there plans?

Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.

Is it on the agenda?

Part of SARS' strategy to boost tax revenue through increased compliance. Lifestyle audits are in effect.

Goals

To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.

Analyst: Nduduzo Langa
Status: in-progress
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