by The Computing Australia Group | 
Microsoft 365 for business has become the default way most Australian organisations run email, files, meetings and security. It’s also now the main way businesses get access to Microsoft’s AI assistant, Copilot. However, the right plan, the right security settings and the right Copilot option make a big difference to what you actually get for your money.
This guide covers the benefits that matter most to Australian businesses, including data storage, security and the Essential Eight, then explains your Copilot options in plain English and how to roll AI out safely.
Updated 8 November 2026
What's changed for Microsoft 365 in 2026
- Copilot Business launched for smaller organisations (Dec 2025). It brings the full Microsoft 365 Copilot experience to Business plans with up to 300 users, at a lower price than the enterprise licence. See "Your Copilot options".
- Business plan prices and features changed (1 July 2026). Business Basic and Standard went up while Business Premium held steady, and mailboxes doubled to 100 GB. See "Which plan".
- Copilot Chat comes with eligible plans. Secure, web-grounded AI chat is available at no extra cost to work accounts on eligible Microsoft 365 subscriptions.
What is Microsoft 365 for business?
Microsoft 365 is a subscription that bundles Office apps such as Word, Excel, PowerPoint and Outlook with cloud services: Exchange email, OneDrive and SharePoint for files, and Teams for chat and meetings. The higher business plans add security and device management tools. On top of that, you pay per user, per month, and Microsoft keeps the apps and services up to date.
Benefits of Microsoft 365 for Australian businesses
Many benefits apply anywhere, but several matter especially in Australia.
Your data stays in Australia
For tenants set up in Australia, Microsoft stores core data such as email, OneDrive, SharePoint and Teams content at rest in Australian data centres.
Security that supports the Essential Eight
In particular, multi-factor authentication, device management and automatic updates help you meet several of ASD’s Essential Eight strategies.
Work from anywhere in WA and beyond
Staff in the office, on site or in regional areas use the same files and apps, because everything syncs across devices.
One place to collaborate
Teams, SharePoint and OneDrive keep conversations, meetings and shared files together, instead of scattered across email.
No more end-of-support deadlines
Apps update continuously, unlike Office 2016 and 2019, which lost support in October 2025.
Predictable costs that scale
You pay per user, so adding a staff member or a seasonal worker is simple, with no large upfront licence purchase.
Microsoft 365 for business and the Essential Eight
The Australian Signals Directorate’s Essential Eight is the benchmark many insurers, clients and government agencies now ask about. For example, Microsoft 365 Business Premium includes tools that help with several of the strategies, but configuration is what counts. However, buying the licence alone doesn’t make you compliant.
| Essential Eight strategy | How Microsoft 365 can help |
|---|---|
| Multi-factor authentication | For instance, Microsoft Entra ID enforces MFA and conditional access for every user. |
| Patch applications | Microsoft 365 Apps update automatically, and device policies also keep them current. |
| Patch operating systems | In addition, Intune (in Business Premium) manages Windows updates across devices. |
| Configure Office macro settings | Similarly, Intune policies can block macros from the internet and untrusted sources. |
| Restrict admin privileges | Furthermore, separate admin accounts and role-based access in Entra ID limit who can change what. |
| Regular backups | Microsoft 365 alone doesn't cover this. Therefore, back up email, OneDrive, SharePoint and Teams to a separate service. |
Read our full guide to the Essential Eight for what each maturity level involves.
Which Microsoft 365 business plan is right for you?
The three Business plans suit organisations with up to 300 users. Here’s how they differ in practice, so you can compare them at a glance.
| Business Basic | Business Standard | Business Premium | |
|---|---|---|---|
| Office apps | Web and mobile versions | Desktop, web and mobile | Desktop, web and mobile |
| Email, Teams, OneDrive | Yes | Yes | Yes |
| Mailbox size | 100 GB | 100 GB | 100 GB |
| Advanced security and device management | No | No | Yes: Defender for Business, Intune and Entra ID P1 |
| July 2026 price change | Increased | Increased | No change |
| Best for | Staff who mainly work in a browser | Most office-based teams | Businesses that need strong security or want to meet the Essential Eight |
In our experience, Business Premium is the right choice for most businesses that handle client or financial data. What's more, since the July 2026 changes, the gap between Standard and Premium has also narrowed.
Your Copilot options in Microsoft 365
Copilot is Microsoft’s AI assistant. At the moment, there are two main ways Australian businesses use it, and the difference matters.
| Microsoft 365 Copilot Chat | Microsoft 365 Copilot Business | |
|---|---|---|
| Cost | No extra cost with eligible plans | Paid add-on per user |
| Who can get it | Work accounts on eligible Microsoft 365 subscriptions | Business Basic, Standard or Premium, up to 300 users |
| What it works with | The web, plus files you share with it | Your emails, files, meetings and chats, inside Word, Excel, PowerPoint, Outlook and Teams |
| Data protection | Enterprise data protection; data stays in your region | Same, and respects your existing permissions |
| Best for | Drafting, research and getting started with AI | Teams who want AI built into their daily work |
Copilot Business offers the same features as the enterprise Microsoft 365 Copilot licence, but Microsoft prices it for smaller organisations. Larger organisations use the enterprise version instead.
What Copilot can do for a typical business
- Meetings. Summarise a Teams meeting, list the actions and who owns them.
- Email. Catch up on a long Outlook thread and draft a reply in your tone.
- Documents. Turn notes into a first draft in Word, or a draft presentation in PowerPoint.
- Spreadsheets. Ask questions about your data in Excel in plain English.
- Finding information. Search across your files, chats and emails to answer a question quickly.
Before you switch Copilot on
Copilot can only see what each user already has permission to see. That’s good for security, but it also means any oversharing in SharePoint, OneDrive or Teams becomes easy to surface. Therefore, prepare first:
- Tidy up permissions. First, review who can access sensitive folders, especially HR, finance and client files.
- Label sensitive information. Then use sensitivity labels so staff handle confidential documents correctly.
- Set an AI use policy. Also agree which tools staff can use and what data they can share.
- Start with a pilot group. Give Copilot to a few people first, measure the time saved, then expand.
- Train your team. Finally, short, role-specific training makes the biggest difference to how much people use it.
For a wider comparison, see our guide to Copilot vs ChatGPT and our article on AI in the workplace.
How we use AI ourselves
We use AI tools every day at CAG, and we roll out Microsoft 365 Copilot for clients. We've also trained AI models on more than 200,000 of our own service tickets. As a result, our advice comes from real use, not vendor brochures.
- Copilot rollouts. Readiness checks, permissions clean-up, pilot groups and training.
- Workflow automations. Automating repetitive steps between Microsoft 365 and your other systems.
- AI assistants. Custom assistants that answer questions from your own documents.
Read more about our AI consulting and automation services.
How CAG helps with Microsoft 365 for business
We’re a Microsoft partner with a Perth team in Belmont. For Microsoft 365, we handle setup and migration from older servers or other email systems, security configuration, and Copilot rollouts. We also provide cloud backup and recovery, so your Microsoft 365 data is protected separately. After that, our managed IT services include 24/7 monitoring, endpoint detection and response with automatic containment, and Essential Eight assessments.
Moving from an old server? Our cloud migration guide for small business explains the steps. You can also learn more about our cloud computing services and disaster recovery.
Microsoft partner in Perth
Getting the most from Microsoft 365?
Talk to our team about your plans, security settings or a Copilot pilot. We'll review your setup and tell you what's worth changing.
Your questions answered
Microsoft 365 for business basics
Is Microsoft 365 data stored in Australia?
For tenants set up in Australia, Microsoft stores core data such as Exchange mailboxes and SharePoint, OneDrive and Teams content at rest in Australian data centres. Even so, some features handle data differently, and your admin centre shows where your tenant’s data is stored.
Is Microsoft 365 the same as Office 365?
Microsoft renamed most Office 365 business plans to Microsoft 365. The business plans include the Office apps plus cloud services such as Exchange, OneDrive, SharePoint and Teams, and the higher plans add security tools.
Does Microsoft back up my Microsoft 365 data?
Microsoft keeps its service running and offers some retention features, but that isn’t the same as an independent backup. We recommend backing up email, OneDrive, SharePoint and Teams to a separate service.
Copilot questions
Is Copilot included with Microsoft 365?
Copilot Chat is available at no extra cost to work accounts on eligible Microsoft 365 subscriptions. By contrast, Copilot inside Word, Excel, Outlook and Teams, working with your own business data, needs a paid Copilot licence such as Copilot Business.
Is Copilot safe for business data?
Copilot works within Microsoft 365’s security and compliance controls, and only shows each user content they already have permission to access. Even so, the main risk is overshared files, so review permissions before rollout.
Do we need Business Premium to use Copilot?
No. Copilot Business can be added to Business Basic, Standard or Premium. However, Business Premium’s security tools make it easier to control what Copilot can reach.
Sources and further reading
- ASD Blueprint for Secure Cloud — Microsoft 365 tenant residency
- Microsoft Learn — Where your Microsoft 365 customer data is stored
- Australian Signals Directorate — Essential Eight
- Microsoft — Microsoft 365 Copilot Chat
- Computerworld — Microsoft cuts Copilot price for smaller businesses
- The Register — Microsoft 365 price changes from July 2026
Microsoft plans, features and prices change regularly. Last reviewed 8 November 2026.
About the author
Chris Karapetcoff
Director (Client Growth and Success), The Computing Australia Group
Chris has worked with The Computing Australia Group for over 20 years and looks after its client relationships. He helps organisations get outstanding value from their IT spend, with plain-English advice and a complete IT solution they can build on. As he tells every client: your IT system should just work.
