If you’re using Microsoft 365 Personal or Family, you’ll have noticed that the renewal price has jumped. Many Australians have been surprised to see their annual cost rise significantly, and it’s led to enough frustration that the Australian Competition and Consumer Commission (ACCC) has taken legal action against Microsoft for misleading millions of consumers.
Here’s what’s actually going on, why it matters, and how you can avoid paying more than you need to. Recent coverage from ABC News has brought this issue into the spotlight, so here’s a clear breakdown of what’s happening and what practical steps you can take.
What Happened with Microsoft 365 Pricing
Microsoft recently added its AI assistant, Copilot, to its 365 Personal and Family plans. Alongside this change came a sizeable price increase. For many households, the jump wasn’t small. Suddenly, your usual renewal cost was noticeably higher, rising from $109 to $159 for Microsoft 365 Personal and $139 to $179 for Microsoft 365 Family in Australia, and it wasn’t immediately clear that Copilot was the reason.
The ACCC alleges that Microsoft failed to properly inform customers that they had the option to stay on a cheaper, non-Copilot version of the subscription. Instead, many people were told the new price was simply the new normal unless they cancelled entirely. The alternative option to remain on a lower-cost, “classic” plan wasn’t made obvious. As a result, people understandably felt boxed into paying more.
Why Australians are Frustrated
Microsoft 365 is a staple for a lot of families, students, sole traders and small businesses. When a subscription becomes part of your day-to-day work or home life, a sudden price spike isn’t just inconvenient, it feels unfair.
The frustration isn’t just about the cost increase. It’s about customers not being clearly told they had a choice. If you didn’t want Copilot, you should have been able to stay on the same plan at the previous price without having to dig around for hidden options.
The Good News: You Can Avoid the Higher Fee
If your renewal is coming up, you don’t have to accept the higher price. You do have the option to stick with a non-Copilot version of Microsoft 365, which keeps your cost similar to what you were paying before.
Here’s what to do:
- Check your renewal amount in your Microsoft account. If it’s higher than last time, it’s likely because Copilot has been added.
- Decide if you need Copilot. If you don’t use AI tools in Word, Excel or Outlook, there’s no reason to pay extra for something you won’t benefit from.
- Look for the “Classic” plan. (Microsoft notes these Classic plans are only available for a limited time, so it’s worth switching sooner rather than later.) This is the version that retains the older, lower pricing.
- If you can’t see it immediately, follow this flow for the Classic option:
✅ Go to accounts.microsoft.com and open Services & subscriptions.
🔍 Find your Microsoft 365 Personal/Family subscription, choose Manage → Cancel subscription.
➡️ Continue through the cancellation prompts until you reach the page that offers Switch plan. Select Microsoft 365 Personal Classic or Microsoft 365 Family Classic (the non‑Copilot plan), then confirm the switch.
📱 If you’re billed via Apple/Google or a retailer, you may need to cancel there first and then re‑subscribe directly with Microsoft to a Classic plan.
⏳ Timing: Microsoft sends two renewal‑related emails — one well in advance and another about 7 days before your renewal date. The Classic plan option often shows up only as you get close to renewal, particularly when recurring billing is ON. Many users say the 7‑day reminder email is the first time they saw the Classic option appear.
🌐 If the Classic option still doesn’t appear, contact Microsoft support and explicitly request a move to Microsoft 365 Personal Classic or Microsoft 365 Family Classic.
How to contact Microsoft Support:
• Visit support.microsoft.com/contactus
• Select Subscriptions & Billing
• Choose Microsoft 365 and select Get help
• When the virtual agent appears, type: “I want to switch to Microsoft 365 Personal Classic” (or Family Classic)
• If asked for an issue category, choose Billing or Subscription changes.
5. Switch before your renewal date so you’re not automatically charged the higher amount.
A Simple Takeaway
You don’t have to pay more for Microsoft 365 if you don’t want Copilot. Despite the recent controversy and the ACCC’s legal action, you still have control over your subscription. If you prefer to stick with the tools you already use and avoid extra costs, the option is there — you just need to know where to look.
Need a Hand?
This article focuses on personal Microsoft accounts, and the steps above will work for most home users. But if you’re unsure, or if you’d like advice on Microsoft 365 Business plans for your workplace, the team at Computer Logic is always happy to point you in the right direction.
