Microsoft 365 E7 costs AU$148.20 per user, per month in Australia on an annual commitment, excluding GST. It is worth considering for users who already need E5, Copilot, Agent 365 and the Microsoft Entra Suite. For most organisations, the best approach is mixed licensing rather than moving every user to E7.
If you’re after a full rundown of what’s included, start with our breakdown of Microsoft 365 E7. This article picks up where that leaves off: the pricing and the upgrade decision.
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Key takeaways
- Microsoft 365 E7 is best suited to users who actively need Copilot, agent governance and advanced identity controls.
- E7 can make financial sense for E5 users already paying for Copilot, because it adds Agent 365 and the Entra Suite for a relatively small uplift.
- E7 is usually not the right default licence for every employee.
- Most Australian organisations should model E7, E5 and E3 by role before upgrading.
- Data governance, permissions and Copilot adoption should be reviewed before committing to E7 at scale.
Microsoft 365 E7 pricing in Australia
Microsoft’s official Australian list prices, on an annual commitment and excluding GST:
| Plan | AU price (user/mo) | What it includes |
| Microsoft 365 E3 | AU$56.80 | Core productivity, Intune, baseline security |
| Microsoft 365 E5 | AU$85.30 | E3 plus advanced security, compliance and analytics |
| Microsoft 365 Copilot (add-on) | AU$44.90 | The AI assistant across Word, Excel, Outlook, Teams |
| Microsoft 365 E7 | AU$148.20 | E5 + Copilot + Agent 365 + Entra Suite, bundled |
Two points to keep in mind before you budget. There’s a lower-priced “without Teams” version of E7 at AU$135.40 per user, per month, for organisations that manage calling and meetings separately. It’s worth confirming with your partner. And E7 doesn’t cover the cost of running AI agents; building and operating them happens through Copilot Studio and Azure on metered billing. E7 licenses the governance layer, not unlimited AI usage.
How Microsoft 365 E7 compares with E5 and Copilot
If you’re already running E5 with the Copilot add-on, the combined cost is:
AU$85.30 + AU$44.90 = AU$130.20 per user, per month
That still doesn’t include Agent 365 or the full Entra Suite. Moving those users to E7 at AU$148.20 adds both for roughly AU$18 more per user, per month, effectively bundling two premium products into a modest increase. For organisations already planning to invest in agent governance and the Entra Suite, that’s straightforward value.
The picture changes for E5 users without Copilot. For them, E7 is around AU$63 more per user, a significant increase across a few hundred seats. It only pays off if those users will actively use Copilot and agents. Licensing AI that goes unused simply raises your costs without return.
Bottom line: Most organisations should not move every user to E7. The better approach is to map E7, E5 and E3 to actual roles, AI usage and security needs.
A note on the 1 July 2026 price change
Microsoft’s 1 July 2026 pricing update lifts E5 from AU$85.30 to roughly AU$89.79, with E3 rising as well. Because E7 sits above both, the gap between E5 and E7 narrows, which strengthens the case for upgrading if you were already heading towards Copilot. If a renewal is coming up, it’s worth factoring in now.
Who should upgrade to Microsoft 365 E7?
E7 makes the most sense for the people who will use what it adds: employees working in Copilot every day, teams building or running agents in Copilot Studio, and roles that need the Entra Suite’s Zero Trust access and identity governance. It’s also well suited to regulated parts of the business where every AI action needs an audit trail.
For other users, more cost-effective options exist. Staff who need strong security and compliance but aren’t yet using AI are well served by E5, as are users still in a Copilot pilot that hasn’t scaled. General office users who need Office, email and managed devices are covered by E3.
For most Australian businesses, the right answer is a mix: E7 for AI users, E5 for compliance-focused roles, and E3 for everyone else. Upgrading the entire organisation at once is the most common way to overspend.
When should you wait before upgrading?
There’s a strong case for taking a measured approach. Gartner has advised organisations to “assess now, adopt later,” and several agent-governance capabilities are still maturing. It’s worth waiting, or running a small pilot first, if you’re early in your Copilot journey without a clear adoption plan, if your data governance needs work (broad permissions, inconsistent sensitivity labels, unmanaged legacy files), or if you haven’t yet defined how you’ll govern AI.
A licence on its own doesn’t make AI adoption safe; the groundwork does. Copilot will surface whatever a user has access to, so unmanaged permissions become a real risk the moment it’s switched on.
Important note: A licence does not fix poor data governance. Before scaling Copilot or agents, check permissions, sensitivity labels, DLP and retention settings.
Microsoft 365 E7 readiness checklist
Before committing, it’s worth asking:
- Are you already on E5? (E7 is a natural step up from E5, far less so from E3.)
- Do you have a real Copilot adoption plan, not just licences switched on?
- Are teams building or using agents?
- Do you know where your sensitive data lives, and are permissions under control?
- Are your sensitivity labels, DLP and retention policies in good shape?
- Do you genuinely need the Entra Suite’s Zero Trust and identity governance?
- Can you split licensing by role instead of buying one tier for everyone?
If several answers are “not yet,” your investment is better spent preparing than upgrading.
How Kloudify can help with Microsoft 365 licensing
This is the kind of decision we work through with clients regularly. Kloudify can review your licences and map E7, E5 and E3 to the roles that genuinely need them, model the savings of a mixed-licensing approach, and check whether you qualify for the CSP launch promotions running until 31 December 2026. We can also assess whether your Copilot and agent rollout is ready, and help build the governance to support it.
Book a free licensing review and we’ll show you exactly where E7 fits, and where it doesn’t.
Microsoft 365 E7 pricing FAQs
If your people are already using Copilot, yes, you get Agent 365 and the Entra Suite for about AU$18 more per month than E5 plus Copilot on its own. If they’re not using AI, E5 is usually the better value.
No, and in most cases you shouldn’t. A mix of E7 for AI users, E5 for compliance roles, and E3 for everyone else almost always works out more cost-effective.
AU$148.20 per user, per month on an annual commitment, excluding GST, per Microsoft’s list price. CSP and Enterprise Agreement pricing can be lower.
No. Copilot remains available as a AU$44.90 add-on on E3 or E5. E7 simply bundles it together with agent governance and the Entra Suite.
Bottom line: is Microsoft 365 E7 worth it?
For organisations already on E5 with Copilot, E7 is usually worth it: Agent 365 and the Entra Suite are bundled in for roughly AU$18 more per user, per month. For everyone else, the smarter move is mixed licensing, matching E7, E5 and E3 to real roles, AI usage and security needs. Model the mix by role, get your data governance in order, and you only pay the E7 premium where it genuinely pays off.
