Microsoft announced its 2026 commercial pricing update in December, and it lands on 1 July 2026. Across most Business, Enterprise and Frontline plans, increases range from around 5% (E5) to as much as 43% on some Frontline configurations. The reference points most clients care about: E3 goes from US$36 to US$39 per user/month and E5 from US$57 to US$60, with AUD pricing moving in step.
The bigger structural change is Copilot. It stops being a promotional add-on and becomes a permanent part of the line-up, folded into bundled plans rather than billed separately; standalone Copilot for Business moves from about US$18 to US$21. Microsoft is adding capability to justify the rise — Defender for Office 365 Plan 1, Intune Remote Help, advanced analytics, and Security Copilot for E5 customers rolling out through to August.
There’s a lever before the deadline: committing to a one- or three-year subscription before 1 July locks current pricing for the term. For most SMBs the right move is a quick licence review now — confirm you’re on the correct SKU, decide where annual commitment makes sense, and avoid paying the increase on seats you could have locked.