Managed IT Services Pricing Australia:
What Is Included and What Costs Extra
A guide to how managed IT services are priced in Australia, what is typically included in an MSP contract, and what you should expect to pay extra for.
About these estimates
The price ranges in this guide are indicative estimates based on publicly advertised MSP pricing in Australia. Actual costs vary significantly based on your specific requirements. All figures are exclusive of GST unless stated otherwise. Always request a detailed, itemised quote from any provider you are evaluating.
The 4 Common MSP Pricing Models
Per-User Pricing
Commonly advertised range: $80–$180/user/monthOften includes:
- Helpdesk support per user
- Endpoint management
- Microsoft 365 management
- Security monitoring per seat
Pros
- +Predictable and scalable
- +Easy to budget as you grow
- +Aligns cost to actual usage
Cons
- −Can get expensive for large teams
- −May not reflect infrastructure complexity
Per-Device Pricing
Commonly advertised range: $40–$120/device/monthOften includes:
- Monitoring per device
- Patch management
- Antivirus and EDR
- Remote support per endpoint
Pros
- +Clear cost per asset
- +Easy asset tracking
- +Scales with hardware
Cons
- −Doesn't account for user complexity
- −BYOD environments get tricky
All-Inclusive Flat Fee
Commonly advertised range: $1,500–$8,000+/monthOften includes:
- Unlimited helpdesk support
- Infrastructure management
- Security monitoring
- Strategic IT advisory
Pros
- +Maximum predictability
- +No surprise bills
- +Encourages proactive MSP behaviour
Cons
- −Higher base cost
- −May pay for unused capacity early on
Tiered Service Packages
Commonly advertised range: $60–$220/user/month depending on tierOften includes:
- Bronze: basic monitoring
- Silver: + helpdesk + patching
- Gold: + security + vCIO
- Platinum: full managed stack
Pros
- +Match spend to actual need
- +Upgrade path built in
- +Most common in the market
Cons
- −Comparing tiers across MSPs is complex
- −Scope creep if tiers are poorly defined
What Is Typically Included vs What Costs Extra
Every MSP scopes their contracts differently. The lists below reflect what is commonly included or excluded — always confirm with your provider.
Usually included in a managed plan
- Helpdesk support (phone, email, remote) during business hours
- Proactive monitoring of servers, networks, and endpoints
- Patch management and operating system updates
- Basic endpoint security (antivirus / EDR)
- Microsoft 365 user administration
- Backup monitoring and alerting
- Vendor liaison for internet and telephony issues
- Monthly or quarterly reporting
Usually costs extra or billed separately
- Hardware procurement (desktops, laptops, servers, networking)
- Software licensing (Microsoft 365, Adobe, line-of-business apps)
- Onboarding and transition fees when switching MSP
- Project work (office moves, server migrations, new deployments)
- After-hours and weekend support callouts
- Advanced security tools (SIEM, SOC, security awareness training)
- On-site technician visits beyond an included allowance
- Cabling, rack-and-stack, and physical infrastructure work
Worked Examples
These are illustrative examples only, not real quotes. They show how a proposal might be structured so you know what to look for. Your actual quote will differ.
Example 1: A 25-person professional services firm
Assumptions: per-user model, business-hours support only (Mon–Fri 8am–6pm), basic endpoint security (EDR), Microsoft 365 user administration, no on-site visits included.
| Line item | Unit cost (ex-GST) | Monthly total |
|---|---|---|
| Managed services — 25 users | $110/user | $2,750 |
| M365 Business Standard licensing — 25 seats | $18/user | $450 |
| Backup (cloud-to-cloud, M365 data) | $6/user | $150 |
| Estimated monthly total (ex-GST) | $3,350 | |
| GST (10%) | $335 | |
| Estimated monthly total (inc-GST) | $3,685 |
This is an illustrative example, not a real quote. Licensing costs are approximate and subject to change by the vendor.
Example 2: A 60-person business with 3 locations
Assumptions: tiered model (Gold tier), 24/7 support, enhanced security (EDR + SIEM + security awareness training), 2 on-site visits per month included, 3 network locations managed.
| Line item | Unit cost (ex-GST) | Monthly total |
|---|---|---|
| Managed services — Gold tier, 60 users, 24/7 | $170/user | $10,200 |
| M365 Business Premium licensing — 60 seats | $30/user | $1,800 |
| SIEM / SOC monitoring | $12/user | $720 |
| Security awareness training platform | $4/user | $240 |
| Multi-site network management (3 locations) | $250/site | $750 |
| Estimated monthly total (ex-GST) | $13,710 | |
| GST (10%) | $1,371 | |
| Estimated monthly total (inc-GST) | $15,081 |
This is an illustrative example, not a real quote. Actual costs depend on your environment, vendor licensing, and the MSP's pricing structure.
What Drives Your MSP Cost
GST Treatment
- •Managed IT services attract 10% GST in Australia. Your MSP invoice will include a GST component.
- •Proposals and advertising may show prices ex-GST or inc-GST — always confirm which you are looking at before comparing quotes.
- •If your business is registered for GST, you can generally claim the GST component as an input tax credit. Consult your accountant for advice specific to your situation.
- •All price ranges in this guide are exclusive of GST unless otherwise noted.
Additional Costs to Ask About
Beyond the monthly managed services fee, ask prospective MSPs about these items that often sit outside the base contract.
Software licensing
Microsoft 365, security tools, backup software, and line-of-business apps are usually passed through at cost or with a margin. Ask whether licensing is included, bundled at a markup, or billed separately.
Onboarding & transition fees
Switching MSPs involves documentation, migration, and setup. One-off onboarding fees can range from a few hundred dollars to several thousand depending on complexity. Ask for this in writing upfront.
Project work
Office moves, server migrations, new site deployments, and network upgrades are typically scoped and quoted separately — either as fixed-price projects or at an hourly rate (commonly $150–$250/hr ex-GST).
After-hours support
If your base plan covers business hours only, after-hours callouts may be charged at a premium hourly rate or via a separate retainer. Clarify the cost before you need it.
Hardware procurement
MSPs often source hardware on your behalf. Some pass through at cost, others apply a margin. Ask whether you are free to procure your own hardware or if there is a requirement to purchase through the MSP.
Early termination fees
Contracts of 12–36 months may include an early exit fee. Understand the penalty structure and notice period before you sign.
Red Flags in MSP Pricing Proposals
- No written SLA with response and resolution time commitments
- Pricing too low to sustain a quality local team (under $40/user/month)
- Vague scope — what's included vs billable is unclear
- No dedicated account manager or escalation path
- Overseas-only helpdesk with no Australian-based staff
- Locked into proprietary tools that prevent switching MSPs
Need Help Comparing MSP Proposals?
Get in touch to discuss your requirements. We can connect you with Australian MSPs who provide clear, itemised pricing for your specific environment.
Frequently Asked Questions
How much do managed IT services cost per user in Australia?
Commonly advertised per-user pricing ranges from around $80 to $180 per user per month (ex-GST), depending on the scope of services. Basic monitoring-only plans may start lower, while fully managed plans with 24/7 support and advanced security sit at the higher end. These are indicative ranges — always request an itemised quote.
Is managed IT cheaper than hiring an in-house IT team?
For many Australian SMEs, managed IT can be more cost-effective than employing equivalent in-house staff. A mid-level IT engineer costs roughly $80,000–$110,000/year in salary alone, before tools, training, leave, and superannuation. However, the right approach depends on your size, complexity, and internal capability. Many businesses use a hybrid model.
What's typically NOT included in MSP pricing?
Common exclusions include hardware procurement, software licensing (Microsoft 365, Adobe), major project work (office moves, server migrations), onboarding/transition fees, and after-hours callouts. Always request a detailed scope document listing inclusions and exclusions before signing a contract.
How do I compare MSP pricing proposals fairly?
Normalise all quotes to a per-user-per-month figure and confirm whether prices are ex-GST or inc-GST. List exactly what is included in each proposal. Check response time SLAs, whether the helpdesk is local or offshore, the cybersecurity tools included, and whether project work is capped or billed separately.
Does Affinity MSP publish its pricing?
Affinity MSP is an Australian-based managed IT services provider that offers per-user pricing with local helpdesk staff. They provide itemised quotes on request. Visit their website or contact them directly for current pricing tailored to your business requirements.