Raising Subscription Prices in Australia: Notice, Fairness and How to Keep Customers

Two companies. Two price rises. Two very different outcomes.

Planet Fitness held its entry membership at US$10 a month for 26 years. In 2024 it raised it to US$15, a 50% increase. But it tested the new price in a few markets first, and it applied the rise only to new members. Existing members kept paying US$10. Nobody already paying got a higher bill, so nobody had a reason to cancel.

Microsoft added its Copilot AI to Microsoft 365 in Australia and raised prices: the annual Personal plan went from A$109 to A$159, and Family from A$139 to A$179. According to the ACCC, Microsoft told about 2.7 million auto-renewing subscribers they could accept the higher price or cancel. It allegedly didn't clearly mention a third option: a "Classic" plan without Copilot, at the old price. In October 2025 the ACCC took Microsoft to the Federal Court.

Both raised prices. Only one ended up in court. The difference wasn't the size of the rise. It was how they told customers.

This guide covers the rules for raising subscription prices in Australia as at October 2026. It's general information, not legal advice.

Is there a legal notice period for price increases in Australia?

Not a single, general one.

As at October 2026, the Australian Consumer Law doesn't set a standard number of days' notice before a business raises a subscription price. Instead, four things decide what you can do:

1. Your contract. What do your terms say about changing prices, and how much notice they promise?
2. Unfair contract terms. In a standard form contract with a consumer or small business, a term that lets only you change the price can be unfair and void, and since November 2023 can attract penalties.
3. Misleading conduct. Your price-rise notice must give an accurate picture of the customer's options.
4. Industry rules. Some sectors, like telecommunications, energy and financial services, have their own codes or rules on notice of price changes. If you're in one, check them.

And from 1 July 2027, a fifth thing joins the list. The new subscription rules let regulations require notices at set points during a subscription. The Parliamentary Library's Bills Digest gives "when prices change" as one example. The regulations weren't published when I checked in October 2026.

When is a price-change clause unfair?

The ACCC's contracts guidance includes a useful example from broadband.

A clause letting the provider raise the price, with no right for the customer to exit, is likely to be unfair. The same clause is likely not unfair if customers who don't accept the increase can leave without penalty, because the exit balances the provider's power.

That's the single most useful test for subscription businesses. If you want the flexibility to raise prices, give customers the flexibility to leave.

business.gov.au lists terms that let only one party vary the price as an example of a term that may be unfair. And in June 2026 the ACCC sued Amazon, alleging it relied on unfair terms to add ads to Prime Video mid-contract and then charge A$2.99 a month to remove them, even for annual members who had already paid A$79 upfront. Changing what customers get, mid-term, can be just as risky as changing what they pay.

I go deeper in unfair contract terms and subscription agreements.

Can I raise prices during a fixed term?

Be very careful.

If someone has paid A$490 upfront for 12 months, they reasonably expect that price to hold for 12 months. Even if your contract allows a mid-term change, using it against prepaid customers looks one-sided and invites complaints and unfair-term challenges.

The safer pattern:

• Monthly plans: the new price applies from a billing date after the notice period.
• Annual or fixed-term plans: the new price applies at renewal, with notice before the renewal date.
• Prepaid plans: honor what they paid for. Full stop.

How much notice should I give for a subscription price increase?

Since there's no single rule, here's what I'd treat as good practice. These are my recommendations, not legal minimums.

Xero is a good Australian reference point. When it restructured its Australian plans in July 2024, it said customers would be moved across with at least 60 days' notice. It has since raised prices on a predictable 1 July cycle, which means customers learn to expect it. The Xero case study shows what that did to average revenue per customer.

What should a price increase notice include?

Here's the checklist I'd use for every price-rise email in Australia:

1. The old price and the new price, both including GST for consumers.
2. The exact date the new price applies, and the first billing date at the new price.
3. The reason, briefly and truthfully: new features, higher costs, or both.
4. Every option. Keep the plan, switch plans, move to a cheaper or legacy plan if one exists, pause, or cancel.
5. How to cancel, with a direct link, and confirmation that there's no penalty for leaving because of the change (if that's your policy, and it usually should be).
6. Who to contact with questions.

Number four is the Microsoft lesson. If a cheaper option exists, put it in the email, not halfway through the cancellation flow.

You'll find ready-to-adapt wording in the price increase email templates.

Will I lose money if customers leave?

Usually less than you fear. Here's how to check before you send anything.

The key number is break-even churn: the share of customers you can lose to the price rise before revenue falls.

Break-even churn = 1 − (Old price ÷ New price)

And your costs per customer don't change, so most of that extra revenue drops straight to profit. Run your own scenario in the simulator.

How do you raise prices without a cancellation wave?

A few patterns from the case studies keep showing up:

• Grandfather existing customers when the rise is big, like Planet Fitness did. The revenue phases in slowly, but cancellation risk drops close to zero. See the Planet Fitness case study.
• Step it up. Canva softened a large rise on legacy team plans with a discounted first year.
• Tie it to value. Add something customers can see, then raise the price. And still offer the old plan if you keep it.
• Pick a predictable date. A yearly increase on the same date, as Xero does, becomes part of the relationship.
• Protect your entry price. Keep a plan new customers can say yes to.

My broader guide on how to raise prices without losing customers covers testing, messaging and timing in more depth.

When is a price rise the wrong move?

When customers are locked in and you've added nothing. If your switching costs are high, you can probably push a price rise through. But in the MOATS framework, switching costs are only one of five defenses, and they're the one customers resent most when you lean on them. Using lock-in to squeeze customers erodes the moat, and from 2027 it also attracts the kind of scrutiny the new unfair trading practices ban was written for.

Also, don't raise prices to fix a problem that's really churn or onboarding. A higher price on a leaky bucket just makes the leaks more expensive.

What to do next

1. Read your terms. What do they say about price changes, notice and exit? Is there a penalty-free exit?
2. Model break-even churn with the simulator before you announce.
3. Choose your approach: grandfather, step-up, or a clean rise with notice.
4. Write the email using the six-point checklist, and list every option.
5. Time it so the new price applies at renewal for annual customers.
6. Plan for 2027. A price change after 1 July 2027 can be a "variation" that brings older contracts under the new subscription rules. See automatic renewals in Australia for the notice setup.

Then check the margin. A price rise is the fastest way to lift profit in most subscription businesses, but only if you know your real costs after GST and fees.

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Frequently asked questions

General information only, current as at October 2026. It isn't legal, tax or financial advice and doesn't consider your circumstances. Speak to a qualified adviser before acting.

Robert Coorey, MBA

Robert is the author of The Subscription Playbook and Feed a Starving Crowd and a Director at BPAG Accountants in Sydney. More about Robert.