Microsoft 365 pricing changes and your renewal
Microsoft 365 commercial pricing changed from July 2026. Check your actual Australian plan, billing term and renewal before changing licences.
Read the short answer
The short answer
Microsoft announced commercial pricing updates effective 1 July 2026, with existing customers moving to new pricing at renewal. Check the actual Australian subscription, plan and billing arrangement rather than converting a US price table into a local quote.
Check the renewal that affects you
Record the exact product, billing term, renewal date and seller. A monthly invoice can relate to a longer commitment, so read the agreement rather than relying on how often a charge appears.
Microsoft’s published update covers selected commercial products and notes that pricing varies by country and currency. Your account or reseller quote is the source for the amount your business will pay.
Compare the plan people actually use
List assigned licences and the work each user does. An unused account may need a handover before its licence is removed. A cheaper plan may also remove an application or control that the person relies on.
Review those dependencies before changing the subscription. A licence cleanup is a practical task, but it should not interrupt access to business records.
Separate added features from implementation
New packaging does not mean that every capability is configured or appropriate for the business. Identify what is available, what needs setup and which person will maintain it.
Security and device management features deserve a plan. Buying an entitlement alone does not establish that a control is operating as intended.
Get a comparable quote
Ask for the exact product, user count, commitment, taxes and renewal treatment. Separate support fees from software subscriptions. If a reseller manages the account, confirm who owns the environment and how administrator access works.
Compare quotes with the same requirements. The lowest visible price can be misleading when products or commitments differ.
Review before the decision date
Leave time to check usage and discuss the proposed change before renewal. Record the agreed licences and who will monitor future changes. The July 2026 update has already taken effect, so focus on the renewal that applies to your subscription.
What should you ask the seller for?
Request a written quote with the full product name, quantity, currency, tax treatment, commitment period and renewal date. Ask when the proposed rate applies to your agreement and what flexibility exists for reducing the quantity. The published global table is useful context, but it is not your Australian invoice.
Keep the quote beside the current agreement. If the same person is invoiced separately for software and support, show both amounts in the comparison. This helps distinguish a change in Microsoft pricing from a change in a supplier's service fee.
How do you avoid removing something the team needs?
Review the user's applications and records before removing or changing a licence. A departure may require an agreed mailbox and file handover first. A plan downgrade needs a check against the functions and controls that the business uses.
Record the approved changes and test the affected work afterwards. Keep the next renewal date with the business account register so a future pricing decision does not start with a search through an unattended inbox.
Sources and further reading
These links take you to the publisher's guidance. Product details and requirements can change, so check the current source before making a change.
Content reviewed on 7 October 2026. This guide is a starting point. The scope of a support job depends on your systems, access and business requirements.