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The Australian sugar industry is moving away from the practice of burning the crop before harvest to a system of green cane trash blanketing (GCTB). Since the residues that would have been lost in the fire are returned to the soil, nutrients and organic matter may be accumulating under trash blanketing. There is a need to know if this is the case, to better manage fertiliser inputs and maintain soil fertility. The objective of this work was to determine whether conversion from a burning to a GCTB trash management system is likely to affect soil fertility in terms of C and N. Indicators of short- and long-term soil C and N cycling were measured in 5 field experiments in contrasting climatic conditions. The effects of GCTB varied among experiments. Experiments that had been running for 1–2 years (Harwood) showed no significant trash management effects. In experiments that had been running for 3–6 years (Mackay and Tully), soil organic C and total N were up to 21% greater under trash blanketing than under burning, to 0.10 or 0.25 m depth (most of this effect being in the top 50 mm). Soil microbial activity (CO2 production) and soil microbial biomass also increased under GCTB, presumably as a consequence of the improved C availability. Most of the trash C was respired by the microbial biomass and lost from the system as CO2. The stimulation of microbial activity in these relatively short-term GCTB systems was not accompanied by increased net mineralisation of soil N, probably because of the greatly increased net immobilisation of N. It was calculated that, with standard fertiliser applications, the entire trash blanket could be decomposed without compromising the supply of N to the crop. Calculations of possible long-term effects of converting from a burnt to a GCTB production system suggested that, at the sites studied, soil organic C could increase by 8–15%, total soil N could increase by 9–24%, and inorganic soil N could increase by 37 kg/ha.year, and that it would take 20–30 years for the soils to approach this new equilibrium. The results suggest that fertiliser N application should not be reduced in the first 6 years after adoption of GCTB, but small reductions may be possible in the longer term (>15 years).