Microsoft 365 Copilot Pricing: What Australian Businesses Actually Pay
Microsoft separates included Copilot Chat from the paid Microsoft 365 Copilot Business add-on. The paid licence adds Work IQ and Copilot inside Teams, Outlook, Word, PowerPoint and Excel, but it also requires a qualifying Microsoft 365 plan.
By Aniruddh PanvalkarPricing verified Oct 3, 2026
Plans and pricing
Microsoft 365 Copilot Chat
Included with an eligible Microsoft 365 subscriptionSecure web-grounded AI chat with enterprise data protection; agent usage can be metered separately.
Best for
Organizations testing secure AI chat before buying per-user Copilot licences.
Not for
Users who need full Work IQ grounding and deep Copilot integration across Microsoft 365 apps.
Microsoft 365 Copilot Business — annual
A$31.40 user/month paid yearly; Microsoft may display time-limited promotional ratesAdds Work IQ, in-app Copilot and agent capabilities to an eligible Microsoft 365 business plan.
Best for
Active Microsoft 365 users who repeatedly use Copilot in Outlook, Teams, Word, Excel and PowerPoint.
Not for
Occasional users or teams that have not measured adoption.
Microsoft 365 Copilot Business — monthly
A$37.68 user/month, excluding GSTMonthly commitment with the same core Copilot Business capability and more flexibility.
Best for
Short pilots or organizations avoiding an annual commitment while measuring ROI.
Not for
Stable long-term deployments where annual pricing is cheaper.
Verified on Microsoft's Australian pricing page on 2026-07-28. Prices shown exclude GST where stated and require an eligible Microsoft 365 licence. Promotional rates can expire.
Who should buy Microsoft 365 Copilot Business?
Start with included Copilot Chat, instrument usage and run a pilot with high-frequency Microsoft 365 users. Do not licence every employee by default. The paid add-on is justified when in-app grounding and workflow integration save measurable time.
Calculate your exact cost →Who is overpaying for Microsoft 365 Copilot?
- Organizations assigning paid licences to inactive or occasional users
- Teams buying Copilot Business before using the included Chat tier
- Buyers comparing the add-on price without including the qualifying Microsoft 365 licence
Sources
Prices on this page are checked against these vendor pricing pages and catalogue entries.
Frequently asked questions
Is Microsoft 365 Copilot Chat free?
Microsoft lists Copilot Chat as included for eligible Microsoft Entra users with a qualifying Microsoft 365 subscription. Agent usage may create separate metered charges.
Does Copilot Business require Microsoft 365?
Yes. Microsoft states that the Copilot Business add-on requires a separate qualifying Microsoft 365 plan.