If your business runs on Microsoft 365, a change is coming that will show up on your invoice. From 1 July 2026, Microsoft is raising the price of its commercial Microsoft 365 plans worldwide, the first broad increase to the suite in years, tied to the wave of AI and security features it has been adding. Here is what is actually changing, what it looks like in Australian dollars, and the practical steps worth taking before your renewal.
What's changing, and when
In December 2025 Microsoft announced a global pricing and packaging update across its commercial Microsoft 365 suites, covering the Business, Enterprise and Frontline ranges. The new prices take effect on 1 July 2026.
The important detail for existing customers: you stay on your current rate until your next renewal on or after 1 July. If you are billed monthly, you will see the new pricing from July. If you are on an annual commitment, it applies at your next renewal date. So this is not an overnight jump for everyone, it lands when your subscription rolls over.
The AUD picture
One thing worth being upfront about: Microsoft published these increases in US dollars, and at the time of writing it has not released official Australian dollar figures. So the table below pairs the current Australian list prices with Microsoft's confirmed percentage increases. Treat the new AUD column as indicative, the exact local figure will be set by Microsoft, and Australian pricing can carry a local market adjustment on top of the headline rise.
| Plan | Current (AUD) | Increase | Indicative new (AUD) |
|---|---|---|---|
| Business Basic | $9.00 | +17% | ~$10.50 |
| Business Standard | $18.70 | +12% | ~$20.90 |
| Business Premium | $32.90 | No change | $32.90 |
Per user/month, excluding GST, on an annual commitment. Current AUD list prices as published by Microsoft Australia at the time of writing (June 2026). Increase percentages are Microsoft's confirmed global figures (published in USD); official AUD increases were not yet released, so the new AUD column is indicative. Enterprise (E3, E5) and Frontline (F1, F3) plans are also rising, with F1 and F3 seeing the largest percentage increases.
Estimate your increase
Compare annual-commitment and month-to-month pricing. All figures exclude GST.
Indicative only, excluding GST. Annual-commitment figures use current Australian list prices and Microsoft's confirmed percentage increases; official AUD increases are not yet published. Paying an annual commitment monthly adds about 5%, and month-to-month (no commitment) is about 20% higher than the annual upfront rate, in line with Microsoft's standard pricing.
The standout: Business Premium isn't going up
For small and medium businesses, this is the headline. Microsoft 365 Business Premium, the plan that bundles the full security and device-management stack, Defender, Intune, Entra ID Plan 1 and information protection, is not changing in price. At the same time, Microsoft is adding more into these suites, including Defender for Office 365 Plan 1, Intune Plan 2 and advanced Intune management.
The upshot: Business Premium just became the most cost-effective way to get a genuine security baseline. If you are on Business Standard and bolting on separate security products, it is worth checking whether Premium now does the job for less. We cover what it includes on our Microsoft 365 management page, and Premium is also the foundation we use for Essential Eight uplifts.
What about Copilot?
Separately, Microsoft's promotional pricing for Microsoft 365 Copilot for Business closes on 30 June 2026. If adding Copilot has been on your list, the cost of doing so is a distinct decision worth making with eyes open. Our free Copilot cost estimator and our AI readiness guide can help you weigh it up.
What to do before your renewal
A price rise is a good prompt to make sure you are not overpaying elsewhere:
- Recount your seats. Licence counts drift over time. Removing unused or duplicate licences often offsets some or all of the increase.
- Right-size your plans. Not everyone needs the same licence. Frontline and deskless staff may suit an F-series plan rather than a full Business or Enterprise one.
- Compare Premium with Standard plus add-ons. With Premium holding its price and gaining features, folding separate point products into it can cut cost and simplify management.
- Know your renewal date. It determines exactly when the new pricing applies, and whether you have a window to act first.
The increase is coming. Overpaying for the wrong plan is optional.
The rise itself is modest for most Business plans and unavoidable. The avoidable cost is paying for seats you don't use or a plan that no longer fits. Use the renewal as a checkpoint and the increase can end up close to cost-neutral.
If you would like a hand reviewing your Microsoft 365 licensing before your renewal, our team can audit your seats and plans and tell you the most cost-effective setup for how your business actually works. Pricing here is current at the time of writing (June 2026) and excludes GST; always confirm current figures with Microsoft or your provider.