Microsoft 365 price changes from 1 July 2026
Microsoft is changing Office 365 and Microsoft 365 prices from 1 July 2026. Plan-by-plan AUD estimates and what's bundled into the new pricing.
Microsoft has confirmed new features and price changes for Office 365 and Microsoft 365, taking effect from 1 July 2026. The official figures are USD only; AUD pricing won’t be set until the change actually lands.
Microsoft’s full announcement is here: Advancing Microsoft 365: new capabilities and pricing update.
What we expect in AUD
We can estimate the AUD impact by applying the announced USD percentage change to current AUD month-to-month pricing. Two caveats up front: these are our estimates, not Microsoft’s official AUD figures, and they assume the AUD/USD rate holds. The figures Microsoft eventually publishes will move with the exchange rate at the time.
| Plan | % change | Estimated AUD (M2M) |
|---|---|---|
| Business Basic | 16.66% | $12.60 |
| Business Standard | 12% | $25.13 |
| Business Premium | 0% | $39.48 |
| Office 365 E1 | 0% | $16.68 |
| Office 365 E3 | 13.04% | $49.24 |
| Microsoft 365 E3 | 8.33% | $73.84 |
| Microsoft 365 E5 | 5.26% | $107.74 |
| Microsoft 365 F1 | 33.33% | $5.44 |
| Microsoft 365 F3 | 25% | $18.00 |
The biggest jumps land on the Frontline (F1, F3) plans and on Business Basic. Business Premium and Office 365 E1 are unchanged on price but see new capabilities baked in. Microsoft 365 E5 takes the smallest increase of the plans that are moving.
What’s being added at the same time
Microsoft is bundling extra capability into several plans at the new price. The headline additions:
- Defender for Office 365 Plan 1 is being added to E3 licences. This is the email-side anti-phishing and anti-malware layer Microsoft sells separately today.
- Additional Intune capabilities are joining Microsoft 365 E3 and E5. The exact feature list will firm up closer to July; expect device management and policy controls that previously needed E5 or a standalone Intune SKU.
- Mailbox storage on Microsoft 365 Business plans goes up by 50 GB. A useful jump for the long-tenured user with twelve years of inbox.
The pattern is consistent: Microsoft is lifting price modestly on the plans that already include security features, and lifting it harder on the plans that don’t, while moving more security capability down into the mid-tier plans.
What this means for our clients
A few practical points worth thinking about before 1 July:
- If you’re on Office 365 E3 or Microsoft 365 E3, the bundled Defender for Office 365 Plan 1 may make a separate Defender subscription redundant. Check whether you’re about to double-pay.
- If you’re on Microsoft 365 Business Premium, you’re not paying more, and you’re getting the storage bump. No action needed.
- If you’re on Frontline (F1 or F3), the percentage jumps are the largest in the announcement. Worth a conversation about whether the licence still suits the role, or whether a different SKU is now better value.
- If you’re on annual commitment, your renewal date determines when the new pricing applies to you. Month-to-month subscribers see it immediately on 1 July.
This is exactly what our security and tech reviews catch as part of normal cadence: licences that no longer fit the role, features you’re paying for separately that are now bundled, plans that have drifted out of alignment with what staff actually do. If you’re a managed client, your account lead will fold this into your next review. If you’re not, and you’d like a hand sanity-checking your Microsoft footprint before July, get in touch.