If you've looked at Microsoft 365 pricing recently and found a different number to the one you remember, you're not imagining it. Microsoft's commercial pricing changed across the board on 1 July 2026, and the gap between the three Business plans has shifted in a way that changes the math’s for a lot of Australian businesses. This guide compares Business Basic, Business Standard and Business Premium as they stand today, what each one includes, and how to work out which one fits your business.
Microsoft 365 Business Plans
All figures below are indicative AUD prices per user per month, ex GST, on an annual commitment. Microsoft's regional AUD pricing varies slightly by reseller and agreement type, so confirm your exact rate with Microsoft or your Cloud Solution Provider before budgeting.
| Plan | Price (ex GST) | Apps & Storage | Security |
| Business Basic | ~$9.00/user/mo | Web & mobile Office apps only; 100GB mailbox, 1TB OneDrive | Basic email filtering, MFA |
| Business Standard | ~$19-21/user/mo | Everything in Basic plus full desktop Office apps | Same as Basic - no advanced security stack |
| Business Premium | ~$32.90/user/mo | Everything in Standard | Defender for Business, Intune, Entra ID P1, conditional access |
All three plans support up to 300 users and include Microsoft 365 Copilot Chat, Microsoft's AI-assisted chat experience, at no extra cost.
Microsoft 365 Business Basic Explained
1. What's included
- Web and mobile versions of Word, Excel, PowerPoint and Outlook - no desktop app installs.
- Business email with a custom domain via Exchange Online, with a 100GB mailbox.
- Microsoft Teams, SharePoint, and 1TB of OneDrive storage per user.
2. Who suits it
Lean teams who mainly work in a browser, don't need the full desktop Office apps, and want email and Teams to be sorted cheaply. It's common for very small businesses, or as a lower-cost tier for staff who only need occasional document access.
Microsoft 365 Business Standard Explained
1. What's included
- Everything is in Business Basic, plus the full desktop versions of Word, Excel, PowerPoint and Outlook for Windows and Mac.
- Extras like Bookings and webinar hosting through Teams.
2. Who suits it
Most growing offices land here. It's the plan for businesses whose staff genuinely work inside Word and Excel all day, rather than just viewing documents. On its own, though, it carries the same baseline security as Basic - no device management, no advanced threat protection.
Microsoft 365 Business Premium Explained
1. What's included
- Everything is in Business Standard, plus a full security and device management stack.
2. Who suits it
Businesses handling client or personal data, operating in a regulated industry, or supporting staff on remote and personal devices. For most SMEs holding any sensitive information, this is the plan CSPRO recommends as the sensible default rather than an upgrade to justify later.
3. The security stack in plain English
- Microsoft Defender for Business: real endpoint detection and response, plus safe links and safe attachments scanning for email well beyond Standard's basic spam filtering.
- Microsoft Intune: lets IT manage and secure every device from one dashboard, including wiping company data from a lost phone without touching personal photos.
- Entra ID P1 (conditional access): lets you set rules like "staff can only open company email from a device that's enrolled and encrypted” the control that changes your security posture the most.
July 2026 Pricing Changes: What Changed and Why It Matters
Microsoft's commercial pricing update took effect on 1 July 2026. Business Basic rose by roughly 17%, and Business Standard by roughly 12%. Business Premium's price didn't move at all. Existing subscribers keep their current rate until their next renewal after that date; new subscriptions and renewals from 1 July onward are on the new pricing.
The practical effect is that the price gap between Standard and Premium has narrowed to roughly the cost of a couple of coffees per user per month, for an entire security and device-management stack most businesses would otherwise buy as separate tools. That's worth factoring in even if you were previously happy on Standard.
Which Plan Is Right for Your Business?
- Solo operator or a very lean team, browser-based work, no sensitive data: Business Basic can genuinely be enough.
- Growing office that lives in desktop Word, Excel, and Outlook, company-owned devices, low regulatory exposure: Business Standard is a reasonable fit.
- If you hold client or personal data, operate in a regulated industry (finance, healthcare, legal, professional services), or support remote or BYOD staff, Business Premium is the sensible default, not a luxury upgrade.
- Approaching or exceeding 300 users or needing advanced compliance tools like eDiscovery and unlimited archiving, it's time to look at Enterprise plans (E3/E5).
Microsoft 365 Business vs Enterprise Plans
All three Business plans are capped at 300 users combined across your tenant. If you're approaching that limit, or need advanced compliance features like eDiscovery, unlimited mailbox archiving, or advanced Compliance Manager, Enterprise plans (E3 or E5) are built for that scale. For most businesses under 300 users, though, Business Premium already covers the security ground that used to be an Enterprise-only reason to upgrade.
Common Mistakes When Choosing a Microsoft 365 Plan
- Choosing sticker price alone, without pricing in third-party antivirus, MDM, or conditional access tools you'd otherwise need to buy separately if you skip Premium.
- Forgetting prices shown are ex GST; budget for the GST-inclusive figure when comparing against other quotes.
- Not accounting for the 300-user tenant cap when planning for growth.
- Assuming Copilot Chat is a paid add-on; it's already bundled into all three Business plans.
- Staying on an old plan by default at renewal instead of reviewing whether Premium's narrowed price gap now makes more sense.
How to Switch or Upgrade Your Microsoft 365 Plan
- Review your current plan and user count against the comparison table above.
- Identify which features you're missing: desktop apps, device management, or advanced threat protection.
- Check your renewal date, since switching before it can affect your billing cycle and any locked-in pricing.
- Talk to your CSPRO or IT provider about assigning the new licence per user, rather than a full tenant migration program. Microsoft 365 plan changes are typically applied per user.
- Confirm device enrolment (for Premium) is planned as part of the switch, not left for later, so the security benefits apply from day one.
Conclusion
For most Australian SMEs, the decision comes down to one question: how much would it hurt if a staff device or account were compromised? If the answer is "not much" and your team works on company-owned devices doing low-sensitivity work, Business Standard covers the productivity essentials. If you hold client data, operate in a regulated industry, or support remote and personal devices, Business Premium's narrowed price gap after the July 2026 update makes it the sensible default rather than a luxury upgrade.
