Microsoft 365 licensing in Australia: what each plan costs and which one to buy.

Enterprise suite prices are the with-Teams prices on Microsoft's Australian enterprise pages. Monthly billing for the Business plans is 20% more than annual.

• Entra ID P2: A$15.00

  Privileged Identity Management, ID Protection, risk-based Conditional Access and access reviews. Included in Microsoft 365 E5 and E7.

• Entra ID P1: A$10.50

  Conditional Access and self-service password reset. Already in Business Premium and Microsoft 365 E3, so rarely worth buying on its own.

• Teams Phone: A$15.00

  Calling in Teams. Microsoft's Australian page lists bundles with calling from A$19.50 to A$50.90, depending on the calls included.

• Power BI Pro: A$21.00

  To share Power BI reports. Premium Per User is A$35.90.

• Copilot

  Business Premium with Copilot A$47.90. Copilot Business add-on A$31.40, or A$26.91 in the first year for purchases by 31 December 2026. Enterprise add-on A$44.90.

• Defender for Office 365 Plan 1

  Safe Links and Safe Attachments. In Business Premium, and since 1 July 2026 also in Office 365 E3 and Microsoft 365 E3.

• 1
  Admins with eligible or time-bound rolesAnyone whose admin role is managed through PIM.
• 2
  Members and owners of PIM for GroupsIf you use groups to hand out admin access.
• 3
  People who approve or reject activationsOften a manager or a second admin.
• 4
  People in or running access reviewsBoth those assigned to a review and the reviewers.

Example: a 50-person business with three admins and one approver needs four P2 licences, about A$60 a month ex GST, not fifty. If P2 lapses, Microsoft removes eligible role assignments, so keep an emergency admin account with a permanent assignment.

• Business Basic up 16%, Business Standard up 12%Business Premium did not change, which narrowed the gap to Premium.
• Office 365 E3 up 13%, Microsoft 365 E3 up 8%, E5 up 5%Frontline plans rose too: F1 by 33% and F3 by 25%.
• Defender for Office 365 Plan 1 added to E3Now included in Office 365 E3 and Microsoft 365 E3, per Microsoft's service description.
• More in Copilot ChatMicrosoft added inbox and calendar awareness and Word, Excel and PowerPoint agents to Copilot Chat in the business plans.

• You have more than 300 peopleThe Business plans stop at 300 seats in total. Microsoft 365 E3 at A$58.40 is the usual step, with E5 where you need P2 and advanced Defender for everyone.
• Some staff only need email and never use a work computerBusiness Basic at A$10.50 can suit them, as long as you accept their phones and any devices they use are not managed by Intune.
• Staff share a kiosk or work on the floorMicrosoft's frontline F plans exist for this. We quote those case by case.

• Business Standard plus security bought separatelyStandard plus Entra ID P1 alone is only A$1.40 less than Premium, before you pay for device management or protection.
• Paying month to month for staff who are not going anywhereMonthly billing on Business plans costs 20% more than annual.
• Licences for people who have leftStaff leave and licences stay. Check licences against the staff list every quarter.
• Entra ID P2 on every userPIM only needs P2 for the people who use it: admins, approvers and reviewers.
• Copilot for everyone on day oneCopilot Chat is already included. Watch who uses it before buying paid seats.
• Forgetting the 300 cap counts every Business plan250 Premium seats leaves room for only 50 more across Basic, Standard and Premium.

How we right-size a tenant

Our licensing review, step by step.

1. Step 1Export what you pay for

   Every subscription, seat count, billing term and renewal date from the Microsoft 365 admin centre.

2. Step 2Match licences to people

   Each licence against the staff list. Leavers, duplicates and unused add-ons flagged.

3. Step 3Pick the plan per group

   Premium for staff on computers, Basic only where it fits, enterprise plans past 300.

4. Step 4Right-size the add-ons

   P2 for admins and approvers, Copilot for the people who use it, Teams Phone where it replaces a phone system.

5. Step 5Line up renewals

   Move steady seats to annual billing and bring renewal dates together.

• Managed Microsoft 365The tenant set up, secured and looked after.
• Conditional Access libraryThe policies Entra ID P1 pays for.
• Privileged access guideSetting up PIM once you have P2.
• Intune deep diveDevice management in Business Premium.
• AI assistants comparedCopilot against Claude, ChatGPT and Gemini.
• Microsoft 365 security baselineWhat to switch on after you license it.

Keep reading

• Managed Microsoft 365 Licensing, security and support in one plan.
• Privileged access guide Setting up PIM.
• Conditional Access library Policies we deploy.
• ASD Essentials tracker Where admin privileges fit in ASD's new guidance.

Reviewed by Blake Bath, General Manager, on 30 October 2026. Prices from Microsoft's Australian pages, ex GST, checked 30 October 2026. Plan contents, the 300 seat cap and PIM licence rules from Microsoft Learn. Microsoft 365, Entra, Intune, Defender and Copilot are trademarks of Microsoft Corporation. Microsoft, Microsoft 365 business plans and pricing (Australia); Microsoft, Microsoft 365 enterprise plans and pricing (Australia); Microsoft, Office 365 enterprise plans and pricing (Australia); Microsoft, Entra pricing (Australia); Microsoft, 2026 Microsoft 365 packaging and pricing updates; Microsoft Learn, Microsoft 365 Business Premium FAQ; Microsoft Learn, Entra ID Governance licensing fundamentals (PIM); Microsoft Learn, Defender for Office 365 service description