Step-by-Step Guide: How to Switch to Microsoft 365 Classic and Claim Your Refund (Australia)

How to switch to the Microsoft 365 Classic plan and claim a refund

-Step-by-Step Guide: How to Switch to Microsoft 365 Classic and Claim Your Refund (Australia)

Friday 07 November,2025/Reposted by popular request 21 March,2026

This Guide was compiled with the use of Google Gemini AI

Fact Checked by ST Newsroom Editor A.Ritenis e-mail:    editor@sydneytimes.net.au

 *We accept no responsibility or liability for mistakes or inaccuracies or complications encountered by readers of the Sydney Times in using or implementing this shared/aggregated  Google Guide .

Microsoft has outlined the process for eligible Australian subscribers to downgrade their plans and receive a full refund of the price difference following the ACCC’s action.

The key to claiming your refund is to switch your subscription to the lower-priced Microsoft 365 Classic plan. The refund will then be automatically processed.

Eligibility and Deadlines

• Who is Eligible? You must have been an Australian subscriber on a Microsoft 365 Personal or Family plan who was automatically renewed at the new, higher price (which includes Copilot/AI features) on or after November 30, 2024.
• Deadline to Act: You must switch to the Classic plan by December 31, 2025, to be eligible for the refund.
• Refund Coverage: The refund will cover the difference in price between the higher-priced plan and the Classic plan, dating back to your first renewal after November 30, 2024.

The Step-by-Step Switch and Refund Process

The most straightforward way to manage this change is through the official communication you should have received and the standard Microsoft Account management portal.

Step 1: Check for the Official Microsoft Email

• Microsoft is sending a direct email to all affected subscribers.
• The email will outline your options:
  1. Stay on the current, higher-priced plan (includes Copilot/AI features). No action is required.
  2. Switch to the Microsoft 365 Classic plan and receive the refund. The email should contain a direct link for this switch.

Step 2: Switch to the Classic Plan (The Critical Action)

A. Using the Email Link (Recommended):

• Click the link provided in the official email from Microsoft regarding your subscription options.
• This link should direct you to your Microsoft account subscription page with the option to change to the Microsoft 365 Personal Classic or Family Classic plan.
  • Note: Some users have reported initial glitches where the Family Classic link directs to the Personal Classic plan. If this happens, you may need to manually adjust the URL or use the alternative method below.

B. Using the Microsoft Account Portal (Alternative Manual Method):

1. Go to the Microsoft Services & Subscriptions page: account.microsoft.com/services
2. Sign in with the Microsoft account associated with your subscription.
3. Find your current Microsoft 365 Personal/Family subscription and select Manage.
4. On the management page, look for options to “Cancel subscription” or “Upgrade or Cancel.”
5. Selecting the cancellation path is often the way to reveal the option to “Switch to a plan with fewer features” or “Downgrade.”
6. You should then be presented with the Microsoft 365 [Personal/Family] Classic plan, which is offered at the original, lower price (e.g., ~$109/year for Personal Classic or ~$139/year for Family Classic).
7. Select the Classic plan to complete the switch. You must ensure you choose the correct Personal or Family version.

Step 3: Refund Processing

• Once you successfully switch to the Classic plan, no further action is required for the refund.
• Microsoft will automatically calculate the price difference you paid since your first renewal after November 30, 2024.
• The refund will be processed within 30 days of your plan switch.
• The funds will be returned to the original payment method used for the subscription.

Key Plan Differences

The core difference between the plans is the inclusion of the new AI features:

If you do not use the AI features and wish to pay the original price, the Classic plan is the best choice to secure your refund.