A simple overview of what’s changing, what’s new, and what it means for your Microsoft 365 subscriptions.
Microsoft has announced a global pricing update for select Microsoft 365 and Office 365 commercial subscriptions. The updated pricing applies to new purchases and renewals on or after 1 July 2026. If you’re an existing customer, you will generally stay on your current price until your next renewal after that date.
What’s changing on 1 July 2026
- List prices are increasing for a range of Microsoft 365 suites (Business, Enterprise, and Frontline) and some related components.
- The change takes effect at renewal: customers keep current pricing until the next renewal on/after 1 July 2026.
- Local market pricing applies: Microsoft applies local currency adjustments, so NZD/AUD pricing may differ from USD list prices advertised elsewhere. Pricing will be updated when region-specific prices are confirmed.
- Standalone Teams and standalone Copilot SKUs aren’t included in this specific suite pricing update.
What’s new
Microsoft is also adding new capabilities into several suites during 2026 (rolling out before/after 1 July):
- AI experiences in the flow of work (for example, Copilot Chat enhancements and analytics).
- Improved security baseline (for example, additional phishing/malware protection such as Microsoft Defender for Office 365 Plan 1 being added to some suites).
- Expanded endpoint management (for example, additional Microsoft Intune capabilities in higher tiers).
- Additional mailbox storage for some plans
Pricing summary (effective at renewal on/after 1 July 2026)
Important: Pricing is indicative only, provided in NZD/AUD and may vary due to exchange-rate adjustments (this table will be updated when region-specific prices are confirmed). Pricing is per user, per month based on annual commitment & monthly billing.
| Business suites | |||
| SKU | % change | Indicative New Price | |
| AUD | NZD | ||
| Microsoft 365 Business Basic | 16% | $ 10.96 | $ 11.82 |
| Microsoft 365 Business Basic (no Teams) | 23% | $ 8.52 | $ 9.18 |
| Microsoft 365 Business Standard | 12% | $ 22.00 | $ 23.76 |
| Microsoft 365 Business Standard (no Teams) | 16% | $ 16.94 | $ 18.27 |
| Microsoft 365 Business Premium | No change | $ 34.55 | $ 37.38 |
| Microsoft 365 Business Premium (no Teams) | No change | $ 29.51 | $ 31.92 |
| Enterprise suites | |||
| SKU | % change | Indicative New Price | |
| AUD | NZD | ||
| Office 365 E1 | No change | $ 14.60 | $ 17.01 |
| Office 365 E1 (no Teams) | No change | $ 9.98 | $ 11.55 |
| Office 365 E3 | 13% | $ 43.08 | $ 46.64 |
| Office 365 E3 (no Teams) | 14% | $ 27.29 | $ 29.57 |
| Office 365 E5 | 8% | $ 68.04 | $ 73.60 |
| Office 365 E5 (no Teams) | 10% | $ 53.71 | $ 58.10 |
| Microsoft 365 E3 | 8% | $ 64.41 | $ 69.75 |
| Microsoft 365 E3 (no Teams) | 11% | $ 50.47 | $ 54.67 |
| Microsoft 365 E5 | 5% | $ 94.05 | $ 101.65 |
| Microsoft 365 E5 (no Teams) | 6% | $ 80.70 | $ 87.26 |
| Suites without Teams | |||
| Frontline suites | |||
| SKU | % change | Indicative New Price | |
| AUD | NZD | ||
| Microsoft 365 F1 | 33% | $ 4.75 | $ 4.93 |
| Microsoft 365 F1 (no Teams) | 43% | $ 3.90 | $ 4.20 |
| Microsoft 365 F3 | 25% | $ 15.75 | $ 16.94 |
| Microsoft 365 F3 (no Teams) | 29% | $ 14.09 | $ 15.17 |
| Standalone components | |||
| SKU | % change | Indicative New Price | |
| AUD | NZD | ||
| Purview Suite | No change | $ 18.90 | $ 20.37 |
| Defender Suite | No change | $ 18.90 | $ 20.37 |
| Windows E3 | 15% | $ 12.68 | $ 13.65 |
| Windows E5 | 9% | $ 18.89 | $ 21.52 |
| Apps for Business | 21% | $ 16.52 | $ 20.07 |
| Apps for Enterprise | 17% | $ 23.34 | $ 28.26 |
| Enterprise Mobility + Security (EMS) E3 | 13% | $ 18.75 | $ 20.29 |
| Enterprise Mobility + Security (EMS) E5 | 10% | $ 28.41 | $ 30.72 |
| Entra ID Plan 1 | 16% | $ 10.96 | $ 11.82 |
| Entra Plan 2 | 11% | $ 15.74 | $ 17.02 |
New feature matrix (summary)
This is a simplified view of the main feature areas Microsoft is adding into suites during 2026. Exact rollout timing and availability can vary by tenant and region.
| New features (by licence) | |||||
| Licence | Copilot Chat enhancements / analytics | Improved link protection (Safe Links / URL checks) | Defender for Office 365 Plan 1 added | Additional Intune capabilities added | More mailbox storage |
| Business Basic | Yes (enhancements) | Yes (URL checks) | — | — | Yes – mailbox increased by 50GB (to 100GB total) |
| Business Standard | Yes (enhancements) | Yes (URL checks) | — | — | Yes – mailbox increased by 50GB (to 100GB total) |
| Business Premium | Yes (enhancements) | Included (varies by security configuration) | — | — | Yes – mailbox increased by 50GB (to 100GB total) |
| Office 365 E1 | Yes (enhancements) | Yes (URL checks) | — | — | — |
| Office 365 E3 | Yes (enhancements) | Yes | Yes | — | — |
| Microsoft 365 E3 | Yes (enhancements) | Yes | Yes | Yes (additional capabilities) | — |
| Microsoft 365 E5 | Yes (enhancements) | Yes | Included already / Yes | Yes (additional capabilities) | — |
| Microsoft 365 F1 / F3 | Some enhancements (where applicable) | Some | — | — | — |
Frequently asked questions
- When will I see the new price? At your next subscription renewal that falls on or after 1 July 2026.
- Does this change our contract term? No. Your subscription term (monthly/annual) stays the same; only the renewal price changes.
- Is Microsoft 365 Copilot now included? No. Copilot remains a separate add-on licence, however Microsoft is expanding Copilot Chat capabilities within Microsoft 365.
- What should we do now? Ensure your licences still match user needs (for example, light users vs power users) and let us know if you want help reviewing your current mix before renewal.
Next steps
- If you’d like, we can run a quick licence review to ensure you’re on the most cost-effective plan mix for your team.
- If you have upcoming renewals before 1 July 2026, we can discuss options and timing.
If you have any further queries, please contact our team by emailing cloudsupport@ubteam.com.
More info can be found on Microsoft's website
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