Microsoft Raises Prices Significantly for Aussie Office Users

The logo of Microsoft is seen outside their offices in Herzliya, near Tel Aviv, Israel, on Dec. 27, 2022. Rami Amichay/Reuters

Australians are finding themselves paying a lot more to use Microsofts Office apps.

Local users of Microsoft 365, formerly known as Office 365, have reported receiving emails from Microsoft informing them about a substantial price increase to their subscriptions.

The price of Microsoft 365 Family subscription, which allows up to six users to use apps such as Word, Excel, PowerPoint, Outlook, and OneNote, will jump from $139 (US$87) to $179 a year—a near 30 percent increase.

The new price will take effect when the subscription is renewed.

Similarly, people who subscribe to Microsoft 365 Personal will see the price go up from $109 to $159 a year—a whopping 45 percent increase.

For those on a monthly personal subscription, the price will increase from $11 to $16 a month.

Microsoft said the price increases were necessary for the tech giant to continue the evolving benefits of the subscription and ensure that “Microsoft customers are among the first to access powerful AI features” in its apps.

A view of the new Microsoft Surface Laptop following a Microsoft launch event, May 2, 2017 in New York City. Drew Angerer/Getty Images

Incorporating New AI Features

The price increases came following Microsoft’s announcement in late October 2024, which stated that the company had incorporated two AI tools, Copilot and Designer, into Microsoft 365 Personal and Family subscriptions in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand.

Copilot is an AI-powered chat service that provides a variety of functions, including helping users search for specific information, generate summaries of documents and create images from text prompts.

Meanwhile, Designer is an AI-powered graphic design and image editing app that allows users to speed up the design process significantly.

At the same time, Microsoft said it was committed to ensuring that its AI features were used in a “responsible and ethical manner.”

“We have implemented a responsible AI process and take actions to mitigate negative outcomes and further prevent misuse, including guardrails, threat monitoring, and abuse detection, and provenance technology, and we are continuously working to strengthen our safety systems to help create a safer environment,” it said.

Microsoft 365 is currently enjoying significant growth as it gains more subscriptions worldwide.

According to its FY24 second-quarter data, the number of Microsoft 365 commercial subscriptions rose 9 percent in the previous 12 months to 400 million.

Commercial revenue from Microsoft 365 also grew 15 percent and 13 percent in constant currency during the period.

Microsoft’s Response

Following the price increases, some Microsoft 365 users have taken to the internet with their complaints.

Lisa Wu, a communications manager at Microsoft ANZ, told The Epoch Times that the price increases reflected the product’s added value and would also enable it to deliver new innovations in the coming years.

“This includes Copilot integration across Microsoft 365, advanced security with Microsoft Defender, creativity tools like Clipchamp and the addition of our newest app, Microsoft Designer,” she said.

Regarding users’ complaints, the manager said Microsoft would take their feedback seriously, and continue to work on providing options to customise their experiences.