Microsoft 365 prices are going up from 1 July 2026. Here is what to do before your renewal.

If your business runs on Microsoft 365, your bill is about to go up. From 1 July 2026, Microsoft is lifting the list price on most of its business and enterprise plans, as set out in Microsoft's own licensing update. Those are the global list figures. Your actual Australian dollar price varies, but the percentage rises carry across.

Why It Matters

For a 20-person team on Business Standard, a 12% lift is roughly a few hundred dollars a year. Not catastrophic, but it lands right as the new financial year starts and most other costs are climbing too.

There's a timing detail worth knowing: existing customers stay on their current price until the first renewal after 1 July, so when it actually bites depends on your renewal date. Microsoft is sweetening the deal slightly. Business Basic and Standard pick up an extra 50GB of mailbox storage, URL time-of-click phishing protection and Copilot Chat, rolling out between June and August.

What to Do Before Your Renewal

• Check which plans your staff are actually on and whether every licence is being used. It's common to find seats still assigned to people who've left, or Premium licences where Standard would do the job.
• If you pay monthly, moving eligible users to an annual commitment usually beats the monthly rate.
• If security is the only reason you'd jump to Business Premium, weigh that against the cost of buying those protections as add-ons.