As part of Microsoft’s goal to have consistent pricing for all their products across the world, they are adjusting their prices on 1st September 2023 for several currencies, including AUD and NZD.
If you’re a Microsoft 365 user or planning on buying any Microsoft product in Australia, here are the things you should know about the price changes.
Will you be affected by the Microsoft price change?
Microsoft’s price adjustments will affect you if you purchase any Microsoft software, such as Microsoft 365, including licences for Business Premium and Enterprise. This will impact all sectors, whether commercial, government, non-profit, or education.
Customers who have an annual subscription, the change will take effect upon renewal or anniversary date.
Affected commercial licences
Specifically, prices will change for the commercial licencing programs as follows:
- Enterprise Agreement: Commercial, Government, and Enrolment for Education Solutions
- Microsoft Customer Agreement for enterprise (MCA-E): Seat-based offers only
- CSP with MCA: Seat-based offers only – Commercial, Government, and Education Solutions
- Legacy CSP Open Value: Commercial, Government, and Education Solutions
- Open Value Subscription: Commercial, Government, and Education Solutions
- Microsoft Products and Services Agreement (MPSA): Commercial, Government and Academic
- Microsoft Online Services Portal (MOSP)
- MCA Online
- Select Plus
How much will the increase (or decrease) be in Australia?
Actual local currency prices are expected to become available by 1st August. In general, prices will increase by 9% for customers purchasing in Australian dollars, while other currencies will be affected as follows:
|Currency||Cloud Software Price Change (%)||On-Premises Software Price Change (%)|
|New Zealand Dollar||+7%||None|
Note that in some cases like the Swiss Franc above, the change means a price reduction, because the goal is to align with the US dollar.
Who are excluded from the price adjustments?
Current prices for the following customers will be unchanged in this repricing round:
- Those who buy Azure through the Microsoft Customer Agreement (MCA), because Azure is priced in US dollars worldwide (though billed in local currency). The billing rates are published on Azure.com, following local currency calculations that are done every month.
- Business customers with existing orders under commercial licensing agreements, for products with price protection, except for new product additions, new purchase contracts, upgrades, and renewals.
- Those buying Microsoft hardware, consumer software, and consumer cloud services.
Will prices change further after this round?
Local currency prices can still change depending on changes in foreign currency rates, local market situations, and inflation. After 1st September 2023, succeeding price adjustments may happen every 1st February and 1st September of every year.
In case of changes, Microsoft has scheduled to give notice at least 30 days before a price change.
What should I do before the price adjustment takes effect?
If they have any questions, feel free to contact our sales team at 1300 258 243 or firstname.lastname@example.org