Prices are changing, features are shifting, and the gap between the two platforms is narrowing. We compare Google and Microsoft on price, features and fit for Australian SMEs in 2026.
What’s happening: Australian small businesses face a real platform decision in 2026. Google Workspace and Microsoft 365 have both embedded smarter tools into their core plans, but their pricing, strengths and ideal users are different. With Microsoft confirming a price rise from July, now is a practical time for SME owners to review what they are on and why.
For most small businesses, the choice between Google Workspace and Microsoft 365 comes down to one practical question: how does your team actually work, and which platform fits that reality?
Both are cloud-based productivity suites. Both include email, document creation, video meetings, storage and collaboration tools. Both have embedded smarter capabilities into their standard plans over the past year. At the entry level, they are closer in price than many business owners realise. But they are not the same product, and the differences matter depending on your team’s size, habits and existing tools.
The price picture right now
Google Workspace in Australia is set in USD and converted at checkout, with 10% GST added. Reseller pricing for the Business Starter plan generally sits in the range of AUD $8.40 to $11 per user per month ex GST on an annual commitment, depending on the reseller and current exchange rate. Business Standard, which adds more storage, meeting recordings and deeper built-in assistant features across Docs, Sheets and Meet, typically runs between AUD $16.80 and $20 per user per month ex GST through resellers. Businesses should confirm current pricing directly with Google or an authorised reseller before committing.
Microsoft 365 pricing in Australia is currently set by Microsoft’s regional model, with confirmed changes coming from 1 July 2026. At the new pricing, Business Standard will be USD $14 per user per month and Business Premium will be USD $22. SME owners on Microsoft 365 who renew before July can lock in current rates for their agreement term.
It is also worth noting that Microsoft’s recent history with Australian pricing has not been straightforward. The ACCC took Microsoft to court in October 2025, alleging the company made false or misleading representations to around 2.7 million Australian customers over personal subscription price increases, with Microsoft announcing refunds shortly after. That episode applies to personal plans rather than business subscriptions, but it is relevant context for any SME owner reviewing their relationship with the platform.
Where each platform pulls ahead
Google Workspace tends to suit businesses that live in the browser, work collaboratively in real time, and do not rely heavily on locally installed desktop software. Gmail, Google Docs, Sheets, Meet and Drive are all browser-native, which makes them fast to access from any device without setup. Microsoft has added over 1,100 new capabilities to its suite, including native Copilot Chat in Word, Excel, PowerPoint and Outlook, advanced endpoint management and expanded security tools, making it a stronger option for businesses that need tighter device control or work heavily in desktop Office applications. Google has responded with its own Gemini assistant built into Workspace plans, though the depth of integration differs between the two. For businesses already embedded in Microsoft Word, Excel and PowerPoint workflows, switching to Google carries a real transition cost in retraining and file compatibility. For businesses starting fresh or already comfortable working in a browser, Google’s entry price and simplicity make it a strong starting point.
Storage is another practical consideration. Microsoft Business plans will receive an automatic 50GB mailbox increase as part of the 2026 update, moving the standard from 50GB to 100GB, which is a meaningful improvement for teams managing high email volumes.
How to choose
There is no universal right answer, but there are useful questions. Does your team work primarily in installed desktop apps or in a browser? Do you have existing Microsoft files and workflows that would be costly to migrate? How many users are you licensing, and does the per-user cost difference add up meaningfully at your scale? Do you need device management and security features built in, or are you a small enough team that simpler tools cover it?
For a sole trader or a team of two to five people starting out, Google Workspace’s entry price and ease of setup make it a practical first choice. For a team already running on Microsoft tools, the July price rise is a reason to review your plan tier rather than a reason to switch. For businesses on Microsoft 365 Business Basic or Standard, it is worth checking whether the new pricing makes Business Premium, which is holding its price while gaining bundled security features, the more sensible option per user.
Both platforms are improving. The decision is less about which one is better in the abstract and more about which one fits the way your business already runs, and what it will cost you to stay, upgrade or move.
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