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AI in Schools

UNSW loses 95 per cent of Microsoft 365 storage by October

By Brodie McGee ·

Digital Attitudes, 4 July 2026

The Saturday read is one Microsoft 365 pricing shift that lands UNSW with a 95 per cent storage cut by October and puts every other Australian university's cloud storage envelope on the same schedule, one specific NSW audit follow up that names two high school students who pulled 2,000 files including mental health notes and disability records through Microsoft 365's default share to organisation setting, one Google announcement that lands Guided Learning on the classroom Chromebook fleet in July with the teacher lock screen the compliance leads have been asking for, one Quizlet add on that puts study set analytics inside Google Classroom on Education Plus tenants, and one TAFE NSW cohort that puts 50 teachers on secondment inside Adobe, Macquarie Technology Group and OMRON for the second run of the Industry Accelerator.

UNSW confirms Microsoft is cutting its M365 storage 95 per cent by October and calls it an industry wide shift

Juha Saarinen at iTnews reported on Friday 3 July that UNSW has told staff and students Microsoft is enforcing a 95 per cent reduction in its Microsoft 365 storage allocation by October, that the university is "impacting all institutions in the higher education sector that have been using M365 applications and storage solutions", and that "this is an industry wide shift, and every Australian university is navigating the same challenge". Microsoft's 2023 licensing change gives each M365 education tenant a base 100 terabyte pool spread across OneDrive, SharePoint and Exchange, with A1, A3 and A5 licenses adding or removing storage against that pool, and the caps are only now being enforced across Australian institutions. Additional pooled storage sits at USD $300 per month per 10 terabyte increment, and analyst Joseph Sweeney priced a 12 bay network attached storage unit at AUD $500 to $8,000 upfront, an economic comparison that reads sharply against Microsoft's ongoing AI data centre capacity push. iTnews on UNSW facing a 95 per cent cut to its M365 storage by October, 3 July.

Why this matters: For the University of Melbourne, Monash, USyd, ANU, UQ, Adelaide, Curtin, RMIT and every other Australian university chief information officer reading the UNSW statement against their own October renewal schedule, the operational read is that the shared 100 terabyte tenant floor Microsoft set in 2023 has now been enforced across the sector, and the question the next executive briefing answers is whether the university has already priced the 90 day archive plan for the OneDrive estates the research offices, the student support teams and the alumni relations groups have been letting balloon since the 2020 shift to remote. For state Department of Education chief information officers running the same M365 tenant model across the Victorian, NSW, Queensland, WA and SA government schools, the read is that the sector's cheapest large scale storage layer has just carried a 95 per cent haircut on the same policy Microsoft applied to UNSW, and the question the term 3 budget conversation answers is whether the department renegotiates through Microsoft's Australian federal panel arrangement or moves the archival tier to Azure Blob, AARNet CloudStor or a state government owned tenant on the same read as Sweeney's on premises comparison. For Australian ed-tech vendors selling document storage adjacent products into the K to 12 and higher education segments (the assessment platforms, the learning management systems, the parent portals, the OneDrive plug in vendors), the procurement read is that every school and university IT team is about to spend six months on a storage clean out project, and the vendor whose product roadmap does not carry a storage aware retention policy, a joiner mover leaver clean up API and a data lifecycle report the school administrator can hand a chief information officer inside 30 minutes is the vendor whose next renewal reads on the wrong quarter.

NSW audit follow up names two high school students who pulled 2,000 files through the department's Microsoft 365 default share to organisation setting

Leonard Bernardone at ACS Information Age reported on Thursday 2 July that the NSW Auditor-General's audit tabled on Monday 29 June names a specific 2025 incident where two high school students accessed approximately 2,000 files containing other students' mental health diagnoses, family circumstances and disability information across three months. The audit found the NSW Department of Education had configured Microsoft 365 with default permissions that "allowed files to be shared with all users within the organisation", meaning staff collaborating on documents inadvertently gave access to students and staff across every NSW public school. The department contained the breach, disabled the two students' accounts, and required them to delete unrelated files. Of the 491 suspected data breaches the audit logged across 2023 to 2025, 435 qualified as data breaches but not "eligible data breaches" under state law, six met the eligible threshold, and 83 per cent of the incidents came from human error, with 3 per cent from cyber attacks. Security consultant Tracey Broers on the framing: "cybersecurity is no longer just an IT issue involving hackers." ACS Information Age on how two NSW students accessed 2,000 sensitive files, 2 July.

Why this matters: For NSW Department of Education tenant administrators and the state's independent and Catholic sector IT directors reading the audit's specific case study against their own M365 sharing defaults, the operational read is that the "share to everyone in the organisation" toggle Microsoft ships with new tenants was the specific control that let two students pull mental health records, and the question the next control review answers is whether the department has now moved every tenant to sensitivity label enforced sharing, whether the school level administrator can still promote a document to organisation wide without a workflow, and whether the joiner mover leaver process the audit report calls out actually removes access from ex staff on the SIS and the M365 tenant on the same day. For state Department of Education chief information security officers in Victoria, Queensland, WA and SA reading the NSW case study against their own tenant, the read is that the exact same default configuration ships to every M365 tenant in the country, and the question the next Australian Education Senior Officials Committee IT working group answers is whether each state's tenant hardening guide has moved past the recommended settings the department published to the mandatory settings the auditor general will read across at the next audit cycle. For the K to 12 SIS vendors (Compass, Sentral, School Bytes, Schoolbox, SEQTA, Edval, Synergetic), the procurement read is that the NSW audit trail now names Microsoft 365 default settings, not the SIS vendors, as the specific control gap the auditor general priced, and the vendor whose SIS to M365 identity flow the next chief information officer conversation answers is the vendor whose integration doc names the sensitivity label policy the department is now writing.

Google puts Guided Learning on classroom Chromebooks in July with the teacher lock screen the compliance leads have been asking for

Google's education blog and the ISTE 2026 announcements confirm that Guided Learning ships across Google Workspace for Education in July, that teachers can lock a student screen to the Guided Learning tool during class through Class tools on Chromebooks, and that the Gemini in Classroom feature is now grounded in the teacher's own assignments, grading rubrics and course materials on Education Plus. Guided Learning walks a student through a problem step by step instead of returning the answer, and the Class tools toggle sits alongside the existing screen restriction controls the Chromebook administrator publishes to the Google Admin console. The Read Along literacy tool completes its Workspace for Education rollout by 3 July, the Classroom Model Context Protocol server opens external ed-tech platforms to Classroom context on the same identity boundary, and the Study Notebooks feature carries over from personal Gemini accounts into school issued accounts in the coming weeks. Requires Google Workspace for Education Plus or the Teaching and Learning add on. Google's education blog on connected AI tools for personalised learning, 25 June.

Why this matters: For the Google Workspace for Education chief information officers in the ACT, Northern Territory and South Australia public school systems and the Catholic and independent networks running Chromebook fleets on Education Plus, the operational read is that the "students used the AI to cheat" concern that has parked Gemini in Classroom in the pilot phase for the last 12 months now has a teacher lock screen that pins the tab to the tutoring surface and prevents a background jump to the raw Gemini prompt, and the question the next school council term 3 briefing answers is whether the school moves the year 7 to 10 rollout from pilot to production on the same term as the Corella Queensland state schools rollout the department has been running against the ChatGPT Edu and NSWEduChat vendor comparisons. For state Department of Education AI procurement teams comparing the Google Workspace for Education Plus stack against Microsoft 365 Copilot, ChatGPT Edu and Claude for Education, the read is that Google has now landed the single feature the AI vendor comparison scorecards have been marking against for two years, and the question the next AI vendor selection paper answers is whether the Chromebook first jurisdictions (the ACT and Northern Territory public school systems, most Catholic Education dioceses) move onto Guided Learning as the primary generative AI surface on the school day or whether the parallel Microsoft 365 Copilot and ChatGPT Edu pilots keep the vendor race open through 2027. For Australian ed-tech vendors selling into the Chromebook estate (the LMS integrators, the assessment platforms, the wellbeing dashboards, the parent portals), the procurement read is that the Classroom MCP server opens a new integration surface that lets the vendor's own product respect Classroom context, and the vendor whose 2027 roadmap does not carry a Classroom MCP connector is the vendor whose next school procurement conversation answers a buyer with the Google Read Along and Guided Learning defaults on the same page.

Quizlet puts study set analytics inside Google Classroom on Education Plus tenants

Emma Thompson at EdTech Innovation Hub reported on Friday 3 July that Quizlet has launched a Google Classroom add on that lets teachers discover, create, assign and track student engagement with Quizlet practice questions, digital flashcards and interactive games directly inside Google Classroom, that Quizlet chief executive Kurt Beidler priced the release on integration friction: "our new Google Classroom add on reduces the friction of navigating between multiple tools and creates a more connected teaching experience", and that the add on requires Google Workspace for Education Plus, sits inside the Google Workspace Marketplace, and may need the school IT administrator's approval before teachers can turn it on. The add on covers bell ringers, brain breaks, classroom games, homework and revision activities, and Quizlet has published a help centre guide and an instructional video for the rollout. EdTech Innovation Hub on Quizlet moving assignments and progress tracking inside Google Classroom, 3 July.

Why this matters: For the K to 12 Google Workspace for Education Plus tenants running Quizlet across the year 5 to 10 vocabulary, science and mathematics classroom estates in the ACT, Northern Territory, South Australian and Catholic Education Chromebook fleets, the operational read is that the vendor that has been living in the browser tab next to Google Classroom for a decade has now moved inside the assignments surface, and the question the next digital learning coordinator conversation answers is whether the school approves the add on in Google Admin, whether the existing Quizlet Plus for Teachers seats need to move to a whole of school Education Plus flow, and whether the free version's advertising surface still sits inside the classroom on the same tab as the analytics dashboard the teacher now shares with the parent portal. For the LMS vendors selling adjacent products into the Australian K to 12 market (Sentral, Schoolbox, SEQTA, Compass, Canvas K to 12), the procurement read is that Google Classroom's add on shelf has just added another integration the school administrator can turn on inside the existing tenant, and the vendor whose own 2027 pitch to a Chromebook first school does not carry a Classroom add on or an MCP server answer is the vendor whose next conversation runs against a growing Google gravity well. For the AI marking, flashcard and assessment startups selling into the Australian schools market, the read is that Quizlet has just moved past the "we integrate with Google Classroom via roster sync" answer to the "we run inside Google Classroom with grade posting and engagement analytics" answer, and the startup whose product does not carry that same depth of integration is the startup whose 2027 renewal reads with the wrong side of the Marketplace shelf.

TAFE NSW puts 50 teachers on secondment inside Adobe, Macquarie Technology Group and OMRON for the second Industry Accelerator cohort

David Braue at ACS Information Age reported on Thursday 2 July that TAFE NSW has launched the second cohort of its Industry Accelerator Teachers to Industry programme, that the current 50 teacher cohort covers AI enabled workforce and digital capability against sponsors Adobe, Macquarie Technology Group and OMRON Automation and Robotics, and that the pilot cohort ran 34 teachers through advanced manufacturing partners. TAFE NSW managing director Chloe Read on the framing: "our teachers are already highly professional, bring real world experience into the classroom, and know how to best engage and support students". NSW Minister for Skills Steve Whan on the intent: "by getting teachers back into workplaces, this new initiative will help TAFE NSW support, grow and retain world class teachers." The programme launched formally in June 2026 alongside the NSW government's AUD $2.7 billion TAFE NSW investment, a 23 per cent annual increase that includes AUD $233.2 million to upgrade campus networks, modernise classroom technology, and deliver new devices for regional staff and students. ACS Information Age on TAFE NSW tapping the tech industry to refresh teachers' skills, 2 July.

Why this matters: For TAFE Queensland, Melbourne Polytechnic, Bendigo Kangan, Chisholm, South Metropolitan TAFE and TAFE SA leadership reading the NSW model against their own teacher currency and industry engagement policies, the operational read is that the sector's biggest institute has now put a repeatable industry secondment model against the sector's biggest labour supply problem, and the question the next TAFE Directors Australia meeting answers is whether the NSW model becomes the template every state stands up against the federal TAFE Technology Fund and the National Skills Agreement, or whether each portfolio's own funding envelope keeps the industry programme boutique. For federal Department of Employment and Workplace Relations officials running the TAFE Technology Fund and the National Skills Agreement performance metrics, the read is that TAFE NSW has now published a specific programme against the sector's teacher currency problem, and the question the next portfolio budget review answers is whether the fund carries a national industry secondment stream that Victoria, Queensland, WA and SA can draw against on the same terms NSW just funded through the AUD $233.2 million campus and device line. For Adobe, Macquarie Technology Group, OMRON and every other Australian technology vendor selling into the TAFE and vocational sector, the read is that TAFE NSW has now published a repeatable programme that puts vendor engineers next to teachers with a career pathway back to the classroom, and the vendor whose 2027 pitch to a state training minister does not carry a comparable programme is the vendor whose next contract renewal reads without the workforce lever the NSW skills minister just named.

Yesterday's brief carried the NSW audit's crown jewels classification and the Anthropic Sonnet 5 default swap; today's UNSW storage cut sits against the same tenant governance arc, and the Guided Learning ship and Quizlet add on sit against the same Google Workspace surface the Corella and ChatGPT Edu rollouts are still working around. More at digitalattitudes.com.au.

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