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Microsoft has confirmed new features and price changes for Office 365 and Microsoft 365, taking effect from 1 July 2026. The official figures are in US dollars only; Australian prices will not be set until the change takes effect.
Microsoft’s full announcement is here: Advancing Microsoft 365: new capabilities and pricing update.
Australian dollar estimates, plan by plan
We worked these out by applying Microsoft’s announced US dollar percentage change to today’s Australian dollar (AUD) month-to-month price. They are our estimates, not Microsoft’s official AUD figures, and they assume the exchange rate holds. Whatever Microsoft publishes will move with the rate on the day.
| Plan | % change | Estimated AUD (month-to-month) |
|---|---|---|
| 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 are on the Frontline plans (F1 and F3) and on Business Basic. Business Premium and Office 365 E1 hold their price and still gain new capabilities. Microsoft 365 E5 takes the smallest increase of the plans that are moving.
What Microsoft is adding at the same time
Microsoft is bundling extra capability into several plans at the new price. Three additions matter most.
- Defender for Office 365 Plan 1 is being added to E3 licences. It is the email filtering that blocks phishing and malware, and Microsoft sells it separately today.
- Additional Intune capabilities are joining Microsoft 365 E3 and E5. Intune is the Microsoft tool that manages staff devices. The exact list will not be clear until closer to July. Expect device and policy controls that previously needed E5 or a separate Intune subscription.
- Mailbox storage on Microsoft 365 Business plans goes up by 50 GB. A useful jump for anyone with twelve years of inbox.
The pattern is consistent. Microsoft is lifting price modestly on the plans that already include security features, and harder on the plans that don’t. At the same time it is moving more security capability down into the mid-tier plans.
Check your Microsoft licences before 1 July
- Office 365 E3 or Microsoft 365 E3. The bundled Defender for Office 365 Plan 1 may replace a separate Defender subscription. Check whether you’re about to pay twice.
- Microsoft 365 Business Premium. You’re not paying more, and you get the extra storage. No action needed.
- Frontline F1 or F3. These are the largest percentage jumps in the announcement. Worth a conversation about whether the licence still suits the role, or whether a different plan is now better value.
- Annual commitment. Your renewal date determines when the new pricing applies to you. Month-to-month subscribers see it immediately on 1 July.
Our security and tech reviews already look for exactly this. Licences that no longer fit the role. Features you pay for separately that Microsoft has now bundled. Plans that have drifted away from what staff actually do. If you’re a managed client, your account lead will raise this at your next review. Not a managed client? If you’d like a hand checking your Microsoft licences before July, get in touch.
Tags
- microsoft-365
- pricing
- office-365
- vendor-news
