Microsoft has confirmed its global Microsoft 365 commercial price update takes effect on 1 July 2026, and the licensing FAQ now lists which suites are in and which are out. Office 365 E3/E5, Microsoft 365 E3/E5, Business Basic, Business Standard and Apps for Business are all in. Microsoft 365 Business Premium — the suite most Australian SMBs actually run — is not on the list. Read the official packaging and pricing FAQ for the full SKU breakdown.

The new pricing applies at the first renewal after 1 July. Microsoft is also using the moment to bundle extra security and management features into the suites — Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Microsoft Cloud PKI and a few others — all rolling out by 1 August 2026 with a 30-day notice via Message Center. Whether that bundled value actually lands depends on whether your team turns those tools on.

Why this matters for Australian SMBs

This is the third Microsoft pricing nudge in 12 months and the message is consistent. Business Premium stays frozen because Microsoft wants more customers on it. If you’re still on Business Basic or Standard, the pricing change makes the upgrade maths simpler — you get Defender for Endpoint, Intune, Conditional Access and DLP for not much more than you’ll be paying anyway, and it’s the cleanest path to Essential Eight maturity on a single bill.

What to do this month

Pull your renewal date. If it falls before 1 July, you can lock in current rates for your next term — that’s a real saving if you’re on an annual or three-year agreement. If it falls after, model the cost of moving to Business Premium versus absorbing the increase on your current SKU. For most SMBs running cyber insurance, Essential Eight or board-level security reporting, the upgrade pays for itself. If you’d like a hand running the numbers, our Microsoft 365 specialists can map your licensing.