Microsoft’s global price update for Microsoft 365 took effect on 1 July 2026. Most plans have gone up, some have stayed flat, and when it kicks in depends on what date your subscription renews. With a bit of preparation, most businesses could be able to offset a large portion of the increase and get more value from the Microsoft 365 licence they already pay for.
What the Microsoft 365 price increase covers
Microsoft’s official pricing update applies to Enterprise, Business, and Frontline suites, along with several standalone products such as Microsoft 365 Apps and Entra ID P1 and P2. For the plans most New Zealand small and medium businesses use, list prices changed as follows:
- Business Basic: +16%
- Business Standard: +12%
- Business Premium and Office 365 E1: no change
- Microsoft 365 E3: +8%
- Microsoft 365 E5: +5%
When the Microsoft 365 price increase reaches your renewal
Existing subscriptions keep their current price until their next renewal date on or after 1 July 2026. If your Microsoft 365 term renewed earlier this year, you’re on the old pricing until your next renewal, which for some businesses won’t arrive until well into 2027. Your renewal date sits in the Microsoft 365 admin centre under Billing, then Your Products.
Getting your Microsoft 365 licensing review sorted before renewal
A renewal is a reminder to check that every account is doing something useful. Before your term locks in for another year, it can help to review:
- Licences assigned to staff who have left the business
- Shared mailboxes or scanner accounts sitting on a paid seat they don’t need
- Unassigned seats bought for a hiring round that never quite happened
- Whether your team’s current mix of Business Basic, Standard and Premium still matches how people work day to day
For some businesses, tidying up licensing before renewal can meaningfully reduce the impact of the price increase, though savings vary depending on how many unused or mismatched licences you’re carrying. For a step-by-step walkthrough, see our guide on how to audit your Microsoft 365 licences.
New Microsoft 365 features included in the price increase
Microsoft has paired the price update with new inclusions rolling out through winter 2026. Business Basic, Standard, and Premium each gain an extra 50GB of mailbox storage, and Basic and Standard pick up URL time-of-click protection, which re-checks a link the moment someone clicks it. If your business hasn’t reviewed its security settings in a while, this is a good moment to see what’s switched on and what’s sitting unused.
Why NZ businesses bring in a Microsoft 365 consultant at renewal
Our Microsoft 365 consulting team reviews licensing, permissions, and security settings to identify what’s costing you money for no reason and what capability you’re already paying for but haven’t switched on. Working with a consultant can be more cost-effective than building this expertise in-house and gives your business faster answers when something needs sorting before a deadline.
What to do before your renewal
- Find your renewal date in the Microsoft 365 admin centre under Billing, then Your Products.
- Run a quick licence check to spot unused or unassigned seats.
- Note which new features, like extra mailbox storage and click-time link protection, you are not using yet.
- Contact us 4 to 6 weeks before your renewal if you would like a review done in time.
Talk to Revolution IT before your renewal date
If your Microsoft 365 renewal is coming up, our team can review your licensing and help you decide on your plan mix before the new pricing locks in. If you’d like assistance in understanding what this increase means specifically for your business, get in touch with Revolution IT.
Microsoft 365 Price Increase FAQs
It applies from your subscription’s next renewal date on or after 1 July 2026. Existing terms keep their current pricing until then. Check your renewal date in the admin centre before budgeting for the change.
No. Business Premium and Office 365 E1 remain the same, while Business Basic, Business Standard, and most Enterprise and Frontline plans have increased.
Probably not by moving plans alone, since the update covers almost the whole line-up. The bigger opportunity is removing licences you don’t need and matching each user to the right plan.
In the Microsoft 365 admin centre, go to Billing, then Your Products. Your renewal date is listed against each subscription.
Yes. Our Microsoft 365 consulting team can review your licensing and security settings ahead of your renewal date and recommend changes before you commit to another term. Contact us to arrange a review.
