Microsoft 365 Copilot's AU price rises on 1 July — the promo window closes 30 June

Posted: 9 June 2026 · Category: AI Assistants & Chatbots

Update — 1 September 2026: The rise this story previewed didn't land. Microsoft instead re-ran the discount: AU$26.91/user/month (annual, ex GST) continues under a new promotional window of 1 July – 31 December 2026, with the standard AU$31.40 rate applying after it lapses. Verified against Microsoft's AU pricing page. Source The original story follows unchanged.

If you've been sitting on the fence about Microsoft 365 Copilot, the fence is about to get more expensive. From 1 July 2026, the Australian price goes up — and the promotional rate that's softened the blow disappears on 30 June. You have roughly three weeks.

What's changing

Two things land together. First, the Microsoft 365 Copilot add-on promo rate of AU$26.91 per user/month (ex GST, on an annual commitment) expires on 30 June 2026 and reverts to AU$31.40 per user/month — a rise of about 17%. The monthly-commitment SKU sits higher again, at AU$37.68 per user/month. The standalone Copilot Business licence (for businesses not on a qualifying Microsoft 365 plan) holds at USD$21 per user/month.

Second, and separately, Microsoft's underlying Microsoft 365 base plans also rise from 1 July 2026 — so for many Australian businesses the Copilot increase stacks on top of a higher base subscription. The two changes are independent, but they hit the same invoice on the same date.

To be clear on what Copilot actually is: it's the AI layer that sits inside Word, Excel, Outlook, Teams and PowerPoint — drafting, summarising meetings, building spreadsheet formulas, and (since the Wave 3 update earlier this year) offering model choice, with Claude now available alongside OpenAI's models inside the suite.

What it means for Australian businesses

The good news for Australians is that Microsoft prices Copilot directly in AUD — there's no exchange-rate guesswork, unlike most AI assistants billed in US dollars. The bad news is simply that it's going up. For a 10-person team, the Copilot add-on alone moves from roughly AU$2,690 to AU$3,140 a year (ex GST) — before the base-plan rise.

If Copilot is already earning its keep in your business, the lever is obvious: commit annually before 30 June to lock the lower AU$26.91 rate for another year. If you're still trialling, the honest move is to decide before the deadline rather than drift onto the higher price by default.

Does it change our recommendation?

No — but it sharpens the value question. Copilot remains the natural pick for any business already standardised on Microsoft 365, and the addition of model choice (Claude inside the suite) is a genuine plus. At the new rate it's no longer the cheap option, so weigh it against Google Gemini, which prices in native AUD from A$7.99/month inc GST and has two Australian data centres. See our full Microsoft Copilot review and the ChatGPT vs Gemini comparison for where it sits.

Frequently asked questions

When does Microsoft 365 Copilot's AU price rise?

It was scheduled for 1 July 2026, but the rise didn't land — Microsoft re-ran the discount, and AU$26.91 per user/month (ex GST, annual commitment) now runs under a new promotional window to 31 December 2026. The standard rate of AU$31.40 (AU$37.68 on monthly commitment) applies when it lapses.

Is Copilot priced in Australian dollars?

Yes. Microsoft prices Copilot directly in AUD, so there's no exchange-rate guesswork — unlike most AI assistants billed in US dollars. The figures are ex-GST. The standalone Copilot Business licence holds at USD$21 per user/month.

Should I lock in the lower rate?

If Copilot is already earning its keep, yes — the AU$26.91 annual rate is available again until 31 December 2026, and committing annually locks it for another year. If you're still trialling, decide before that window closes rather than drift onto the standard AU$31.40 rate by default.

What's the cheaper alternative?

Google Gemini, which prices in native AUD from A$7.99/month inc GST and has two Australian data centres. At the new rate Copilot is no longer the cheap option, though it remains the natural pick for businesses already standardised on Microsoft 365.

Sources

• Primary — Microsoft 365 Copilot Australian pricing (AUD per-user rates, annual vs monthly commitment), microsoft.com/en-au/microsoft-365-copilot/pricing — checked 9 June 2026.
• Primary — Microsoft Tech Community, Microsoft 365 Copilot pricing and "act now" promotion guidance (promo end 30 June 2026), techcommunity.microsoft.com — checked 9 June 2026.
• Primary — Microsoft 365 base-plan price-change announcement (effective 1 July 2026), microsoft.com — checked 9 June 2026.

All pricing figures are AUD ex-GST and anchored to Microsoft's own Australian pages. Pricing changes often — confirm the live figure before you buy.

The AI Directory Australia is independent. We review and score AI tools for Australian users — AUD pricing, AU availability, data residency, GST. We don't write ads; affiliate links are disclosed and sponsored content is labelled. Edited by Adam.