Microsoft 365 Prices Are Going Up in July 2026 — What Australian Businesses Should Know
- Roland Smith
- Mar 24
- 2 min read
Updated: Mar 29
Microsoft is increasing prices on several Microsoft 365 plans from July 2026. If you're an Australian business on M365, here's what you need to know.
What's changing
The increases apply to several plans and vary by tier. Microsoft is positioning this as reflecting the addition of Copilot features and AI capabilities across the platform.
The key plans affected include Microsoft 365 Business Basic, Business Standard, E3, and E5. The increases are in the range of 5-10% depending on the plan.
What's NOT changing
Microsoft 365 Business Premium pricing is not increasing in July 2026. If you're on Business Premium, your per-user cost stays the same. Given that Business Premium includes Intune, Defender for Business, Conditional Access, and other security features that would cost extra on lower tiers, it's increasingly the best value plan for Australian SMBs.
What you should do before July
Before you pay more, make sure you're getting your money's worth out of what you've already got.
We built a free tool that shows you every feature included in your current M365 plan: the Microsoft 365 Features Calculator. Pick your plan, see what's included, check off what you're using. Most businesses find they're using about 20% of their licence.
If you discover you're sitting on untapped features — especially security and device management tools — switching them on before the price increase means you're at least getting full value for the higher cost.
Should you change plans?
Maybe. A few scenarios we're seeing:
On Business Basic and barely use it? You might be better off reviewing whether you even need M365, or whether a cheaper option covers your needs.
On Business Standard but want security? Business Premium adds Intune, Defender, and Conditional Access. With Business Standard's price going up and Business Premium's staying put, the gap between them is shrinking. Might be worth upgrading to Premium and getting proper security included rather than bolting on add-ons.
On E3 and not using the advanced features? If you're on E3 but only really need email, Teams, and basic SharePoint, you might be overpaying. On the other hand, if you're on E3 and not using Intune, DLP, or retention policies — switch them on. You're already paying for them.
The bottom line
Price increases are annoying but they're not the real issue. The real issue is paying for features you're not using. Sort that out first, and the price increase matters a lot less.
