Microsoft 365 Business Premium vs Business Standard: Which Does Your Business Need?

Zectron IT

Published 9 October 2026

For most small businesses in 2026, Microsoft 365 Business Premium is the better choice. Business Standard gives you the Office apps, business email and Teams, but Business Premium adds device management, advanced email protection and endpoint security that would otherwise cost extra or be left out. If your business handles client data, uses laptops outside the office or needs to meet cyber insurance requirements, the extra cost of Premium usually pays for itself.

That said, Standard still suits some businesses well. This guide compares the two plans side by side, explains what the Premium security features actually do, and helps you decide which one fits.

Not sure which licence you are on? Our Microsoft 365 services team can review your current setup, or start with a free IT Health Check.

Microsoft 365 Business Premium vs Standard at a glance

Both plans are designed for businesses with up to 300 users, and both include the same core productivity tools. The difference is almost entirely about security and device management.

What both plans include

• Desktop, web and mobile versions of Word, Excel, PowerPoint and Outlook
• Business email on your own domain through Exchange Online
• Microsoft Teams for chat, calls and meetings (unless you choose a “no Teams” version)
• 1 TB of OneDrive cloud storage per user, plus SharePoint for shared files
• Apps such as Bookings, Planner, Forms, Loop and Clipchamp
• Multi-factor authentication, spam filtering and basic malware protection
• Copilot Chat for secure AI chat at no extra cost

What Business Premium adds

• Microsoft Intune: manage and secure laptops, phones and tablets, push out settings and apps, and wipe company data from a lost device.
• Microsoft Defender for Business: endpoint detection and response for your computers, which goes well beyond traditional antivirus.
• Microsoft Defender for Office 365: stronger protection against phishing, malicious links and dangerous attachments.
• Microsoft Entra ID P1 features: Conditional Access, which lets you set rules such as “only allow sign-ins from managed devices” or “block sign-ins from overseas”.
• Microsoft Purview Information Protection and Data Loss Prevention: label sensitive documents and stop them being shared where they should not be.

Current Australian pricing (ex GST)

Here are the prices listed on Microsoft’s Australian website in October 2026, per user, per month, excluding GST:

• Business Standard: AU$21.00 on an annual commitment, or AU$25.20 billed monthly
• Business Premium: AU$32.90 on an annual commitment, or AU$39.48 billed monthly
• Business Standard (no Teams): AU$16.10 on an annual commitment
• Business Premium (no Teams): AU$28.10 on an annual commitment

On annual pricing, Premium costs AU$11.90 more per user, per month than Standard. Microsoft also sells “with Copilot” bundles: Business Standard with Copilot is listed at AU$35.20 and Business Premium with Copilot at AU$47.90, per user, per month on an annual commitment, ex GST.

Microsoft updated its commercial Microsoft 365 pricing and packaging on 1 July 2026, and prices can change again at any time. Always check the current figures on Microsoft’s Australian plans and pricing page or with your IT provider before you budget.

Why the Premium security features matter

The features in Business Premium are not just extras for large companies. They line up closely with the controls the Australian Signals Directorate recommends for every business in the ASD Essential Eight.

Conditional Access stops most stolen-password logins

Business Standard lets you turn on MFA, which is an important first step (see our small business guide to MFA). But attackers now use tricks that get around basic MFA, such as fake login pages that steal session tokens. Conditional Access in Premium lets you require a company-managed device, block risky locations and enforce stronger sign-in methods, which closes many of those gaps. Our article on unexpected ways hackers get into business accounts explains why this matters.

Intune keeps company data safe on every device

When staff work from home, client sites or their phones, business data travels with them. Intune lets you enforce encryption, screen locks and updates, and remotely remove company data if a laptop is lost or someone leaves the business. Without it, you are relying on each person to set up their own device correctly.

Defender for Business catches what antivirus misses

Modern attacks often use legitimate tools and stolen credentials rather than obvious viruses. Defender for Business watches for suspicious behaviour on each computer and can isolate a device automatically. On its own, Defender for Business is listed at AU$4.50 per user, per month ex GST, so getting it bundled into Premium covers part of the price difference straight away.

Better phishing protection

Defender for Office 365 checks links when they are clicked, opens attachments in a safe environment first and helps detect impersonation of your own staff or suppliers. Since email is still the most common way attacks start, this is one of the most valuable parts of Premium.

When Business Standard is enough

Business Standard can still be the right choice in some situations:

• You already have equivalent security tools. If your IT provider supplies a separate endpoint detection tool, email security filter and device management platform, you may not need the Microsoft versions.
• Very small teams with low-risk data. A sole trader or very small team with no sensitive client information may decide basic MFA and good habits are enough for now.
• Mixed licensing. Some businesses give Premium to staff who handle finance and client data, and Standard to others. Microsoft allows you to mix plans, although it makes policies more complex to manage.

Even in these cases, review the decision each year. Cyber insurers and larger clients increasingly ask about device management, endpoint protection and Conditional Access, and Premium is often the simplest way to say yes.

When Business Premium is the right call

Business Premium is usually the better fit if any of these apply:

• You hold personal, financial or health information about clients
• Staff work remotely or use their own phones for email
• Your cyber insurance application asks about EDR, MFA or device management
• You work with government, legal, finance or healthcare clients who expect good security
• You want to align with the Essential Eight without buying several separate tools

It is worth remembering that licences only help when they are set up properly. Many businesses pay for Business Premium and never switch on Intune, Conditional Access or Defender. If that sounds familiar, our managed IT security services can configure and monitor these tools for you, with 24/7 monitoring in place.

How to switch from Standard to Premium

Moving from Business Standard to Business Premium is a licence change, not a migration. Email, files and Teams stay exactly where they are. A sensible upgrade usually looks like this:

1. Check your licence count and renewal dates so you do not pay for unused seats.
2. Change the licences through your Microsoft partner or the Microsoft 365 admin centre.
3. Enrol devices in Intune and apply baseline security policies.
4. Turn on Defender for Business across all computers.
5. Introduce Conditional Access gradually, starting in report-only mode so nobody is locked out.
6. Train staff on what has changed, such as new sign-in prompts.

If you are planning wider changes, our IT roadmap for growing businesses shows where Microsoft 365 fits as you add staff.

Frequently asked questions

Can I mix Business Standard and Business Premium licences?

Yes. Microsoft lets you assign different Business plans to different users within the same organisation, up to 300 users in total for the Business plans. Just be aware that security policies built on Premium features will only apply to users who hold a Premium licence.

Do I lose any data when upgrading to Business Premium?

No. Upgrading is a licence change. Mailboxes, OneDrive files, SharePoint sites and Teams chats all stay in place. The new security features simply become available to configure.

Is Copilot included in Business Premium?

Copilot Chat is included at no extra cost for eligible users. The full Microsoft 365 Copilot experience inside Word, Excel, Outlook and Teams requires either a “with Copilot” bundle or a separate Copilot Business licence. Our guide to using Microsoft 365 Copilot in your small business explains the options.