Microsoft 365 Prices Rise on 1 July — What Australian SMBs Should Do Now

Microsoft is rolling out a global price and packaging update for its Microsoft 365 business plans, and the new pricing takes effect on 1 July 2026. As detailed in Microsoft’s official licensing update, most Business plans are going up: Business Basic rises about 16% and Business Standard about 12%, while Business Premium holds steady. Standalone Teams and Copilot licences aren’t part of this change. Pricing is set in US dollars and varies by country and currency, so the exact Australian figure will differ — but the direction is up.

For a small business running 10 to 30 seats, a 12–16% lift adds up over a year, so it’s worth planning for. The packaging side matters too. From the rollout (starting June 2026, complete by 1 August), Business Basic and Standard pick up an extra 50GB of mailbox storage, URL time-of-click phishing protection, and Copilot Chat features at no extra charge. So you’re paying more, but getting more security baked in — the time-of-click protection in particular is a real upgrade for phishing defence, which is still the way most Australian SMBs get breached. Not-for-profits aren’t exempt either: NFP pricing is tied to commercial rates, though Business Basic stays free and Standard rises around 17%.

Here’s the practical bit. Existing customers stay on current pricing until their renewal, and Microsoft gives at least 30 days’ notice before packaging changes hit your tenant. If your renewal falls close to 1 July, it can be worth locking in a 12-month term beforehand to hold today’s rate for another year. It’s also a good moment to check your plan mix — if you’ve been paying for add-ons like Defender for Office or Intune features that are now bundled into your suite, that’s spend you can claw back.

If you’d like a hand reviewing your Microsoft 365 licensing before the change lands, the All IT Services team can map your seats to the right plan and make sure you’re not double-paying for security you already have.