Microsoft 365 Prices Go Up in July 2026 — What Perth Businesses Need to Do Before Then

Last updated: 7 April 2026

Microsoft has confirmed that commercial pricing for Microsoft 365 will increase on 1 July 2026. If you run a business on Microsoft 365, and most IT-dependent Perth businesses do, you have less than three months to review your licences, lock in renewals, and make sure you are actually using what you are paying for.

The good news is that Microsoft is not just raising prices. They are bundling in security, AI, data governance, and device management features that previously cost extra. The bad news is that if you do not act before your next renewal, you will pay more without necessarily getting more value. Here is what is changing and what you should do about it.

What is changing with Microsoft 365 pricing

Microsoft announced these changes in December 2025, with pricing updates taking effect on 1 July 2026 and packaging updates beginning to roll out in June 2026. The price increases apply globally with local market adjustments. Existing customers remain on current pricing until their next renewal after 1 July.

The changes for small and medium businesses:

A note on Australian pricing: Microsoft has not yet published confirmed AUD rates for the July 2026 changes. Local prices will reflect Microsoft’s regional pricing model rather than a direct USD-to-AUD conversion, so the percentage increases above are the best guide for budgeting. We will update this page with confirmed AUD pricing as soon as Microsoft publishes local rates. Contact us to be notified when Australian pricing is confirmed.

The standout detail: Business Premium pricing is not changing. For businesses that need the full security stack, and most businesses do, Business Premium just became the most cost-effective option relative to what is included.

Also worth noting: Microsoft is doubling mailbox storage for Business Basic, Business Standard, and Business Premium from 50 GB to 100 GB per user, aligning them with Enterprise plans. If your team has been bumping up against email storage limits, this is a welcome change bundled in at no extra cost.

New security features bundled into existing licences

Microsoft is raising the security baseline across all plans. Features that previously required separate add-on purchases are now included in standard licences.

Microsoft Defender for Office 365 Plan 1 is being added to Office 365 E3 and Microsoft 365 E3. That means advanced anti-phishing, anti-malware, safe attachment scanning, and link protection is now part of the core licence. If your organisation is on E3 and currently paying for a separate Defender add-on, you may be able to drop that line item.

URL checks in Outlook and Office apps are being added to Business Basic, Business Standard, and Office 365 E1. This protects users when they click links in emails and documents by checking them against known malicious websites. For businesses on managed IT services, this is a welcome addition to the default security posture.

With mandatory ransomware reporting now enforced in Australia, organisations that take cybersecurity seriously need every layer they can get. These changes reduce the gap between basic and premium security. But they do not eliminate it. Business Premium still includes Intune device management, Conditional Access, and Azure Information Protection that the lower tiers lack.

Intune and endpoint management changes

Microsoft is expanding what is included in its endpoint management tooling. For businesses on Microsoft 365 E3, new Intune capabilities including Remote Help, Advanced Analytics, and Intune Plan 2 features are being added. These tools help IT teams resolve device issues faster, detect problems before they become outages, and manage policies more effectively.

For E5 customers, Microsoft is going further with Endpoint Privilege Management, Enterprise Application Management, and Cloud PKI. These are serious tools for organisations that need to control who can do what on which device, and they are critical for compliance frameworks like the Essential Eight.

Microsoft has confirmed these features will begin rolling out in June 2026, with full availability expected by 1 August 2026. Tenants will receive 30 days notice via Message Center before the new capabilities appear.

If your business relies on a managed IT support provider to handle device management, these additions mean your provider should be reviewing your Intune configuration to ensure the new features are activated and configured correctly. Features that ship disabled are worthless.

Microsoft Purview and the new E3 Security bundle

This is one of the bigger changes that has not received enough attention. Microsoft is introducing a new Security + Intune bundle available as an add-on to Microsoft 365 E3 subscriptions. This bundle combines Microsoft Defender for Endpoint, Microsoft Defender for Office 365, Microsoft Purview Information Protection, and Microsoft Intune endpoint management into a single package.

Previously, getting this comprehensive security stack meant upgrading your entire organisation to E5. For a 50-person business, that is the difference between $1,900 and $3,000 per month. The new bundle gives E3 customers a middle path: enterprise-grade security without paying for every E5 feature.

For Perth businesses in legal, healthcare, and finance, Purview is particularly relevant. It handles data classification, information protection, and compliance policy enforcement. If your business handles sensitive client data, personal health information, or financial records, Purview gives you the tools to classify that data, apply protection labels, and enforce policies that prevent accidental or malicious leakage.

Industry analysts estimate the Security + Intune bundle will sit between $12 and $15 per user per month on top of E3. That represents a potential 30 to 40 per cent saving compared to upgrading to E5. For organisations that need advanced security and data governance but do not use every E5 feature, this is worth a serious look.

We are watching the pricing closely as Microsoft firms up local rates. If you are currently on E3 and debating an E5 upgrade, hold that decision until the bundle pricing is confirmed. It may change the maths entirely.

Security Copilot is coming to E5

Microsoft has announced that Security Copilot will be included with all Microsoft 365 E5 subscriptions. Security Copilot is an AI-powered assistant that integrates into Microsoft Defender, Entra, Intune, and Purview. It helps security teams investigate threats, assess risk, review device compliance, and enforce policy with AI-driven guidance rather than manual investigation.

E5 customers will receive 400 Security Compute Units per month for every 1,000 licenced users. Rollout has already begun for some tenants and will continue over the coming months.

For businesses considering E5, Security Copilot inclusion is a real decision factor. But only if your IT provider is set up to use it. Security Copilot is powerful when integrated into a structured incident response workflow. Without that, it is an expensive dashboard nobody opens.

Copilot Chat is now baked into the platform

Microsoft 365 Copilot Chat, the AI assistant that works across Word, Excel, PowerPoint, Outlook, and OneNote, is now embedded across all Microsoft 365 plans. This is not the full Copilot licence (which still costs extra for advanced features), but it brings AI-powered summarisation, content generation, and calendar intelligence to every user.

For Perth businesses exploring AI adoption, this is a meaningful change. Your staff will have AI tools available whether you have a formal policy or not. That means you need governance in place to manage how AI is used across your organisation. If you have not thought about this yet, a virtual CIO engagement can help you build an AI usage framework that protects your data while giving staff the tools to be more productive.

Why Business Premium deserves a closer look

With Business Basic and Business Standard both going up while Business Premium holds steady, the maths is changing. Business Premium includes everything in Business Standard plus:

At the new pricing, Business Standard will be $14 per user per month and Business Premium will be $22. That $8 gap buys you a full security and device management stack. For most businesses with 20 or more staff, that is a far better investment than bolting on security products individually.

We have been recommending Business Premium to our managed IT clients for some time. This pricing change only strengthens the case.

The renewal window matters

Here is the detail that catches people out: the new prices apply at your next renewal after 1 July 2026. If your annual agreement renews in August 2026, you are paying the new rate. If your agreement renews in June 2026, you lock in the current rate for another 12 months.

This means the timing of your renewal is now a strategic decision. Businesses that act before July can lock in current pricing through mid-2027. Those who wait will pay more from their next renewal onwards.

If you are on a month-to-month arrangement, you will start paying the new rate immediately from July. Converting to an annual commitment before then protects you for a full year.

With less than three months to go, this window is closing. If your renewal falls between July and December 2026, talk to your IT provider now about whether an early renewal makes sense.

What you should do now

Audit your current licences. Run a licence utilisation review. Most businesses have users on plans they do not fully use, or users who need features they do not have. Identify where you are over-provisioned and where you are under-protected. Your IT provider should be able to run this audit for you.

Review your renewal dates. Find out exactly when your Microsoft 365 agreement renews. If it falls after 1 July 2026, consider whether early renewal at the current rate makes financial sense. Even a few months of savings across 50 users adds up.

Check your add-on spend. With Defender, Intune features, and potentially Purview moving into core licences, review whether you are paying for standalone add-ons that will become redundant. This is where the pricing increase can actually work in your favour if managed properly.

Consider the new E3 Security bundle. If you are currently on E3 and considering E5, wait for the Security + Intune bundle pricing to be confirmed. It may deliver the security features you need at a fraction of the E5 cost.

Talk to us about your Microsoft 365 strategy. We are a Microsoft Solutions Partner and we work with Perth businesses every day to optimise their Microsoft 365 environment. Whether you need a licence review, a security uplift, or a full strategy session, we can help you get ahead of these changes. Contact us on 1300 EPIC IT for a free Microsoft 365 review.