Three plans, very different protection. Here is how to pick without overpaying or under-protecting.
Microsoft 365's business plans look similar on the pricing page, but the differences — especially around security — are significant. Choosing wrong means either paying for features you will not use or, more dangerously, missing the security you need.
What are the three Microsoft 365 business plans?
Microsoft 365's three business plans are Business Basic, Business Standard and Business Premium: each is licensed per user for organisations of up to 300 users, and each step up includes everything in the plan below it. Key IT recommends Business Premium for most Melbourne small businesses, because it is the only one of the three with Defender for Business, Intune and conditional access built in.
Business Basic
The web and mobile versions of the Office apps, plus email, Teams, OneDrive and SharePoint. No installed desktop apps. The entry point.
Business Standard
Everything in Basic, plus the full installed desktop apps (Word, Excel, Outlook, PowerPoint) and webinar/booking tools.
Business Premium
Everything in Standard, plus a serious layer of security and device management: Microsoft Defender for Business, Intune device management, conditional access and information protection.
Prices and inclusions changed on 1 July 2026
Checked 15 October 2026. On 1 July 2026 Microsoft raised the list prices of several Microsoft 365 plans, but not Business Premium. These are Microsoft's US dollar list prices per user per month for versions with Teams, from its Microsoft 365 pricing and packaging update:
| Plan | Before 1 July 2026 | From 1 July 2026 |
|---|---|---|
| Business Basic | US$6.00 | US$7.00 |
| Business Standard | US$12.50 | US$14.00 |
| Business Premium | US$22.00 | US$22.00 (no change) |
| Microsoft 365 E3 | US$36.00 | US$39.00 |
All four plans also gained Copilot Chat enhancements. Beyond that:
Business Basic, Standard and Premium
An extra 50GB of mailbox storage.
Business Basic and Standard
URL time-of-click protection, which checks a link when someone clicks it rather than only when the email arrives.
Microsoft 365 E3
Defender for Office 365 Plan 1 and Intune Plan 2, plus Intune Remote Help and Advanced Analytics.
Existing subscribers pay the new price from their first renewal on or after 1 July 2026, and the Australian dollar figure that counts is the one on your renewal quote. For billing terms and what to check before you renew, see our guide to the Microsoft 365 price increase in 2026.
Business Standard vs Premium: what is the difference that matters?
For most businesses the real choice is Business Standard versus Business Premium, and it comes down to security. Standard gives your team the desktop apps; Premium adds the controls that stop the attacks small businesses actually face: Defender for Business protecting staff laptops and PCs, Defender for Office 365 Plan 1 screening attachments for new malware before they arrive and catching impersonation emails (Standard gained only the click-time link checks in July 2026), Intune to encrypt, manage and remotely wipe a lost device, and conditional access that can block a sign-in from an unexpected country or an unmanaged computer. For a business holding any sensitive or client data, those are not luxuries.
Premium also includes Windows Autopilot, so a new laptop registered by your supplier can be shipped straight to a staff member and set itself up when they first sign in. It also carries the user access rights for Azure Virtual Desktop, leaving the Azure computing costs as a separate bill. And because its tools help put several Essential Eight controls in place, including multi-factor authentication, patching, application control and Office macro settings, Premium is the usual starting point for a business working towards a target maturity level.
Business Premium vs Microsoft 365 E3: which fits?
Headcount usually settles this one. Microsoft's Business Premium FAQ sets a limit of 300 seats in total across Business Basic, Standard and Premium. Below that cap, Premium lists at US$22 per user per month against US$39 for E3, and already bundles Defender for Business, Intune and conditional access. Near or over the cap, E3 is the usual next step, and since July 2026 it includes Defender for Office 365 Plan 1, the email protection Premium already carries.
Which Microsoft 365 plan should your business choose?
Business Basic
Suits very light users who work mostly in a browser and do not need installed apps. Rarely the right fit for a whole business.
Business Standard
Fine for businesses that genuinely have separate, robust security tooling already. For most, it leaves a security gap.
Business Premium
The right choice for the majority of Melbourne SMBs, because it bundles the security and device management you would otherwise have to buy separately, usually at higher total cost.
Our rule of thumb: unless you have a specific reason not to, Premium is the sensible default. We help businesses choose and configure the right plan on our Microsoft 365 page.
Where does Microsoft 365 Copilot fit with these plans?
Microsoft 365 Copilot is a separate paid licence, charged per user on top of your Business Basic, Standard or Premium subscription. Getting your plan and data hygiene right first is essential before adding AI, because Copilot can surface anything a user already has access to. If you are weighing it up, read whether Copilot is worth it for your business, then see our guides to Microsoft Copilot and using AI safely.
Frequently asked questions
What is the difference between Microsoft 365 Business Standard and Premium?
Premium adds security and device management — Microsoft Defender for Business, Intune, conditional access and information protection — on top of everything in Standard.
Which Microsoft 365 plan is best for small business?
For most, Business Premium, because it bundles security that would otherwise cost more bought separately. Standard suits businesses with robust separate security tooling.
Does Business Basic include the desktop apps?
No. Basic includes web and mobile versions only. For installed Word, Excel and Outlook, you need Standard or Premium.
Do I need Premium to use Copilot?
Copilot is a separate add-on that works on top of qualifying plans. Premium also ensures your data and security are ready for AI.
Is Microsoft 365 Business Premium worth the extra cost?
For most small businesses, yes. The step up from Standard usually costs less than buying Defender, Intune and conditional access separately, and they are the kind of controls cyber insurance questionnaires and Essential Eight assessments ask about. If nobody will configure them, though, you are paying for features that sit switched off.
Did the July 2026 price rise change the gap between Standard and Premium?
Yes, it narrowed. Business Standard rose US$1.50 while Business Premium stayed at US$22, so at list price the step up fell from US$9.50 to US$8.00 per user per month. That buys Defender for Business, the full Defender for Office 365 Plan 1, Intune and conditional access.
Can I mix Business Basic, Standard and Premium licences?
Yes. One Microsoft 365 tenant can hold different business plans, for example Premium for office staff and Basic for a few light users. The catch is that Premium's security features only cover the people licensed for them, so mixing plans can leave gaps in device management and sign-in protection.
How many users can a Microsoft 365 Business plan have?
Microsoft caps the Business plans at 300 licensed users in total, counting Basic, Standard and Premium seats together. Organisations that outgrow that usually move to Enterprise plans such as Microsoft 365 E3 or E5.
Can I upgrade from Business Standard to Premium later?
Yes. Upgrading the licence does not move your email or files, so there is no migration and your team keeps working while the new security features are configured. Moving to Microsoft 365 from Google Workspace or an old Exchange server is a bigger job, handled as a cloud migration.
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