Microsoft 365 Price Increase Australia 2026: What to Do Now

Microsoft 365 got more expensive on 1 July 2026. If you haven’t looked at your subscription since then, you’re already paying more, and you might not know exactly how much more. This post breaks down which plans went up, by how much, and what you should actually do before your next renewal.

What’s Actually Changing with Microsoft 365 Pricing in Australia?

Two plans went up. Business Basic jumped 17% and Business Standard went up 12%. Business Premium didn’t change at all, which matters more than it sounds, and we’ll get to that.

Here are the actual Australian prices from Microsoft’s own pricing page, ex GST, annual commitment:

Plan	Old Price (ex GST)	New Price (ex GST)	Change
Microsoft 365 Business Basic	AU$9.00/user/month	AU$10.50/user/month	+17%
Microsoft 365 Business Standard	AU$18.75/user/month	AU$21.00/user/month	+12%
Microsoft 365 Business Premium	AU$32.90/user/month	AU$32.90/user/month	No change

Annual commitment, paid monthly. Verify current pricing at microsoft.com/en-au.

In real numbers: a 10-person team on Business Standard was paying around $2,250 a year. That’s now $2,520. Doesn’t sound dramatic, but multiply it across a larger team or a few years and it adds up. A 25-person business on Standard is paying an extra $675 a year before GST.

The increases apply to new subscriptions immediately. Existing customers on annual plans stay on the old rate until their renewal date, so check when yours is coming up.

What New Features Are Included With the Price Increase?

Microsoft isn’t just raising prices for the fun of it. Both Basic and Standard now include things that used to cost extra or weren’t there at all.

The two worth knowing about:

• Mailbox storage doubled to 100GB per user. If you’ve had staff hitting their storage limits, this actually helps.
• URL time-of-click phishing protection. This one is genuinely useful. Instead of only scanning links when an email arrives, Microsoft now re-checks them the moment someone actually clicks. That matters because attackers often swap in malicious URLs after an email gets through the first filter. Having that second check happens automatically in the background and most users will never know it’s there.

There’s also Copilot Chat, Microsoft’s AI tool, now bundled into Basic and Standard. It’s a lighter version of the full Copilot product. Worth trying before you decide whether the paid Copilot add-on is worth it for your team.

Is Business Premium Now the Best Value for Australian Small Businesses?

Honestly, for most businesses, yes. And the July 2026 pricing changes make that case even clearer.

Business Premium hasn’t moved from AU$32.90 per user per month (ex GST). Business Standard is now AU$21.00. That’s an AU$11.90 gap per user per month, or around AU$143 per user per year. For that extra cost, Business Premium includes:

• Microsoft Defender for Business, which is proper endpoint detection and response, not just basic antivirus
• Microsoft Intune for device management, so you can actually control what devices access your systems
• Microsoft Entra ID P1, which gives you conditional access (the ability to say “only let staff log in from enrolled devices”)

If you’re buying endpoint security or device management separately, you’re probably already spending close to that AU$143 per user. And if you’re not buying those things at all, the July 2026 price changes are a reasonable moment to reconsider whether you should be.

A managed IT services provider in Nowra can run through your current setup and tell you whether the upgrade stacks up for your specific situation. It’s not the right move for every business, but it is for more than most people think.

5 Things to Do Before Your Next Renewal

If your Microsoft 365 renewal is coming up in the next few months, here’s what to actually do:

1. Find out your renewal date. Log into admin.microsoft.com, go to Billing, then Your Products. It’ll be right there. If you’re with a Microsoft partner, ask them.
2. Count your active licences. It’s very common for businesses to carry licences for staff who’ve left. If you’ve had any turnover in the last year, there’s a reasonable chance you’re paying for seats nobody is using.
3. Check your add-ons. Third-party email security products that were plugging gaps Microsoft has now filled with Defender may no longer be necessary. Don’t pay twice for the same protection.
4. Run the Business Premium numbers. Compare what you pay for Standard now against what Premium would cost, minus any security tools you could drop. The answer might surprise you.
5. Talk to someone before you just click renew. Renewing without reviewing is how businesses end up overpaying for years. A quick conversation with your IT provider costs nothing and could save a few hundred dollars a year.

What About Microsoft 365 Copilot: Is It Worth It?

The promotional pricing for Microsoft 365 Copilot closed on 30 June 2026, so new subscribers are now paying the standard rate. Whether it makes sense depends almost entirely on what your staff actually spend their time doing.

If your team is in Outlook and Teams all day, drafting emails, sitting in meetings, and pulling together documents, Copilot will save them real time. If your work is mostly operational, trade, or field-based, the value is less clear. The bundled Copilot Chat features in the updated Basic and Standard plans are a good way to test whether AI tools actually fit your workflow before committing to the paid upgrade.

We’ve helped a few Nowra businesses work through this decision. Get in touch if you want a straightforward answer for your specific setup rather than a sales pitch.

Getting Help With Microsoft 365 in Nowra and the Shoalhaven

Microsoft 365 licensing is genuinely confusing, and it changes regularly. Most small business owners don’t have the time to stay on top of it, and they shouldn’t have to.

Webics provides IT support across Nowra and the Shoalhaven. We look after Microsoft 365 environments for local businesses, which means making sure you’re on the right plan, not paying for licences you don’t need, and that your setup is actually secure. Local team, real people, no call centre.

If your renewal is coming up or you just want a second opinion on your current setup, reach out and we’ll take a look.

Frequently Asked Questions: Microsoft 365 Price Increase Australia 2026

When do the Microsoft 365 price increases take effect for existing customers in Australia?

At your next renewal date on or after 1 July 2026. Microsoft is required to give at least 30 days’ notice, sent to the admin email on your account. If you’re not sure when your renewal is, check admin.microsoft.com under Billing.

Does the Microsoft 365 price increase affect Not-For-Profits (NFPs)?

Yes, NFP commercial plans are affected. Business Standard for NFPs goes up alongside the commercial rate. Business Basic for eligible NFPs is still free. If you run a not-for-profit in the Shoalhaven, check your eligibility through Microsoft’s NFP programme if you haven’t already.

Can I avoid the price increase by locking in a longer subscription term?

Not at this point. Any renewal after 1 July 2026 is at the new rate regardless of term length. The window to lock in the old pricing has closed for most businesses. Focus on right-sizing your licences instead.

What is URL time-of-click phishing protection and do I need it?

It’s called Safe Links in Microsoft’s documentation. When a staff member clicks a link in an email, Microsoft checks the destination again at that exact moment, not just when the email first arrived. That catches attackers who swap a safe-looking URL for a malicious one after the email passes your filter. It’s now included in Business Basic and Standard, and yes, you need it.

How do I find out exactly how much my Microsoft 365 bill is increasing?

Log into admin.microsoft.com, go to Billing, then Your Products, and check your plan and seat count. Multiply the difference per user by your seat count by 12 for the annual impact. Or contact your IT provider and ask them to run the numbers for you.

The Microsoft 365 price increase in Australia is live. Basic went up 17%, Standard went up 12%, and Premium stayed flat. If you’ve got 10 or more staff, the difference is real money over a year.

The businesses that come out of this OK are the ones that review their licences before they renew, not after. If you want help doing that, get in touch with Webics. We’ll look at your current setup, tell you what you’re actually using, and work out whether you’re on the right plan.

Book a free Microsoft 365 licence review with Webics →