Microsoft 365 Business plan pricing is increasing from 1 July 2026. If your subscription renews after that date, you’ll pay more. Acting before the deadline could lock in current rates, and there are new features worth knowing about too.
If your business runs on Microsoft 365, and most do, there’s an important change coming that’s worth planning for now. Microsoft has officially announced pricing increases across most commercial Microsoft 365 plans, effective 1 July 2026. This is the most significant pricing update since 2022, and it affects Business, Enterprise, and Frontline plan subscribers worldwide, including here in Australia.
Microsoft has confirmed percentage increases globally, though final Australian dollar pricing is yet to be officially confirmed. Based on current AUD pricing and the announced percentage rises, here’s what Australian businesses should be planning for:
| Plan | Current AUD (per user/month) | Estimated New AUD (per user/month) | Change |
|---|---|---|---|
| Business Basic | A$9.00 | A$10.50 | +~16.7% |
| Business Standard | A$18.70 | A$20.95 | +~12% |
| Business Premium | A$33.00 | A$33.00 | No Change |
Estimated new AUD prices are based on Microsoft’s announced percentage increases applied to current local pricing. Final Australian pricing has not yet been confirmed by Microsoft and may vary. All prices shown are annual commitment, per user per month. Month-to-month pricing is typically around 20% higher.
The price increases apply to the following plans:
The following plans are not changing in price:
Existing customers will see the new pricing at their next renewal after 1 July 2026, regardless of how they purchase. New customers buying impacted plans on or after that date will see the new pricing immediately. Organisations whose subscription renews before 1 July 2026 have an opportunity to lock in current pricing for the duration of their next term, which could represent meaningful savings, particularly for businesses with a larger number of seats.
Microsoft has added over 1,100 new features across Microsoft 365 and related applications over the past year, and the July 2026 pricing reflects that ongoing investment. Here’s what’s notable for Business plan subscribers:
An additional 50GB of email storage per user across all Business plans, bringing the total to 100GB per mailbox. A meaningful upgrade for teams handling large volumes of email and attachments.
Copilot Chat rolls out across all Microsoft 365 users with deep integration into Word, Excel, PowerPoint, Outlook, and Teams — including AI-assisted drafting, summarisation, and Agent Mode for content creation.
The price isn’t going up for Business Premium, and that’s worth noting. It already includes Microsoft Intune, Defender for Business, Conditional Access, and device compliance tools. With the increases across the lower tiers, the value gap between Business Standard and Business Premium narrows considerably. If you’ve been sitting on the fence about upgrading, now is a good time to have that conversation before July 2026.
As your IT partner, Technicalities can help you review your current Microsoft 365 setup, assess your renewal timing, and make sure you’re on the right plan going forward.
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