Australian Users Faced with Significant Increase in Microsoft 365 Prices
The prices for both Microsoft 365 family and personal subscriptions have increased.
Australians are now paying more to access Microsoft’s office apps.
Australian users of Microsoft 365, previously known as Office 365, have received emails from Microsoft notifying them about a significant price hike in their subscriptions.
The cost of a Microsoft 365 Family subscription, which allows up to six users access to apps like Word, Excel, PowerPoint, Outlook, and OneNote, will rise from $139 (US$87) to $179 per year.
This new price will come into effect upon subscription renewal.
Similarly, subscribers to Microsoft 365 Personal will see an increase from $109 to $159 annually.
For those on a monthly personal subscription, the price will jump from $11 to $16 per month.
Related Stories
Microsoft’s Integration of AI Features
The price hikes come after Microsoft’s announcement in late October 2024, revealing the integration of two AI tools, Copilot and Designer, into Microsoft 365 Personal and Family subscriptions in several countries.
Copilot is an AI-powered chat service that assists users in various tasks, such as searching for specific information, summarizing documents, and generating images from text prompts.
On the other hand, Designer is an AI-powered graphic design and image editing tool that significantly speeds up the design process.
Microsoft has emphasized its commitment to responsible and ethical AI usage.
The company stated, “We have implemented a responsible AI process and take actions to mitigate negative outcomes and prevent misuse, including guardrails, threat monitoring, and abuse detection. We are continuously enhancing our safety systems to ensure a safer environment.”
Microsoft 365 is experiencing growth with an increasing number of subscriptions worldwide.
Commercial revenue from Microsoft 365 also saw a 15 percent increase in constant currency during that period.
Microsoft’s Response
Following the price hikes, some Microsoft 365 users have expressed their concerns online.
Lisa Wu, a communications manager at Microsoft ANZ, explained that the price adjustments signify the enhanced value of the product and will enable the delivery of new innovations in the future.
She mentioned, “This includes integrating Copilot into Microsoft 365, enhanced security with Microsoft Defender, creative tools like Clipchamp, and the introduction of our latest app, Microsoft Designer.”
In response to user feedback, Wu assured that Microsoft takes their input seriously and will continue to provide customization options to enhance user experience.
