Microsoft 365 Price Changes and Copilot Updates: What Australian SMBs Need to Know

Microsoft announced pricing updates for its Microsoft 365 suites that took effect on 1 July 2026, along with expanded AI and security capabilities. These changes affect Business Basic, Business Standard and Business Premium plans that many Australian small and mid-sized businesses rely on every day.

What changed with pricing

List prices rose across several plans. Business Basic increased by 16 percent to around $7 per user per month, while Business Standard rose by 12 percent to $14. Business Premium also saw an uplift. The increases apply globally with local market adjustments, so Australian customers should check their renewal notices for exact figures.

Microsoft is adding more value at the same time. Business plans now include extra email storage, improved URL protection and new Copilot Chat features. These extras aim to offset some of the cost for organisations that use the tools.

New Copilot features for everyday work

Copilot Chat has expanded into Teams chats, channels and meetings. Staff can ask questions and receive answers with structured cards for weather, stocks and similar data. Mobile support is rolling out soon.

Additional analytics for Copilot Chat and time-of-click protection help teams understand usage and stay safer online. These features suit businesses with 10 to 100 staff who want AI assistance without moving to full enterprise licensing.

What to do about it

Review your current Microsoft 365 subscriptions before the next renewal. Compare the new list prices against what you actually use and decide whether to add Copilot Chat or stick with core apps.

Run a quick audit of storage needs and security settings. The extra 50 GB of email storage and URL protection can reduce the need for separate tools.

Train a few key users on the new Copilot features so the business sees productivity gains quickly. Track usage through the admin centre to confirm value before committing long term.

These updates are part of a broader shift toward AI-assisted productivity. Australian SMBs that plan now can avoid surprise bills and gain practical tools for daily operations.