Microsoft’s business cloud prices in Australia will drop 4% from 1 January

Your Microsoft 365 bill could get a little smaller next year. Microsoft will cut its business cloud prices in Australian dollars by 4% from 1 January 2027.

Microsoft told its resellers on 11 November, in its monthly partner announcements. It’s the first of a new yearly routine: Microsoft now reviews local-currency prices once a year, with changes taking effect each January.

A cut for Australia, a rise across the Tasman

The change covers what Microsoft calls its commercial cloud: the online services it sells to businesses and organisations. Microsoft says the aim is to bring local prices closer to its global prices.

Five currencies are affected. Australia gets one of the cuts:

Currency	Cloud price change from 1 January 2027
Australian dollar	-4%
New Zealand dollar	+10%
Indian rupee	+15.7%
Norwegian krone	-5.9%
Chinese yuan	Up to -8.5%

Microsoft says individual products “might vary slightly” from those figures because of how prices are calculated and rounded. On-premises software, the kind you install and run on your own servers, doesn’t change in Australian dollars.

What 4% looks like on your plan

Microsoft’s notice doesn’t list prices for individual products. In October, its Australian site listed Business Basic at A$10.50, Business Standard at A$21.00 and Business Premium at A$32.90 a user a month. Those are yearly prices, excluding GST.

On our reading, a 4% cut would take those to about A$10.08, A$20.16 and A$31.58. For a ten-person office on Business Standard, that’s roughly A$100 a year before GST. The real figures will depend on Microsoft’s rounding.

For Basic and Standard, it only partly offsets this year’s rise. Business Basic was A$9.00 before Microsoft’s global price changes in July 2026, and Standard was A$18.70. Our price history of Microsoft 365 business plans has the full six years.

The cut is for business cloud services. Microsoft said in July that any changes to consumer prices, such as Microsoft 365 Personal and Family, would be announced separately.

Your saving may wait for your renewal

Microsoft’s notice doesn’t say when existing subscriptions move to the new prices. Ask your IT provider or reseller when you’ll see the change.

If your renewal falls in the next few weeks, it’s worth asking whether it’ll be priced before or after 1 January. Our plan comparison can help if you’re also reviewing which plan you need.

Copilot changes are on a different clock

Two Copilot dates are separate from the price cut.

Microsoft’s website offers Copilot Business at A$26.91 a user a month for the first year, paid yearly and excluding GST, instead of A$31.40. The offer closes on 31 December 2026. It needs an annual commitment and an eligible Microsoft 365 business plan.

And Microsoft has delayed the pay-as-you-go default for new Copilot Business orders through resellers. It was due on 2 November, then 1 December. Microsoft now plans to start it between January and March 2027. Our earlier story explains what that change means for your bill.

Checklist

• Find your renewal date. Ask your IT provider or reseller when each Microsoft 365 subscription renews.
• Ask your provider when the 4% cut reaches you. Confirm whether your subscription keeps its price until renewal or changes on 1 January 2027. If you renew before then, ask which price applies.
• Compare your next invoice with the old one. Microsoft says individual products may differ slightly from 4%, so check the per-user price for each plan.
• If you’re considering Copilot Business, decide before 31 December. The first-year offer of A$26.91 a user a month closes then, and needs an annual commitment.