The concentrations of organic C, labile organic fractions and the size and activity of the microbial community were measured to a depth of 30 cm below the plant row and at distances of 30 and 60 cm into the inter-row area under sugarcane under preharvest burning or green cane harvesting with retention of a crop residue (trash) mulch. Total root mass was similar under burning and trashing but under trashing there was a redistribution of roots towards the surface 0-10 cm in the inter-row space as roots proliferated beneath the trash mulch. Soil organic C content decreased in response to both increasing distance from the plant row (to a depth of 20 cm) and burning rather than trashing (to a depth of 10 cm). Declines in K₂SO₄-extractable C, light fraction C, microbial biomass C, basal respiration and aggregate stability in response to distance and burning were much more marked than those for organic C and occurred to a depth of 30 cm. Bulk density was greater under burnt than trashed sugarcane and was greater in the inter-row than row, particularly under burning. Heterotrophic functional diversity (measured by analysis of catabolic response profiles to 36 substrates) was also investigated. Principal component analysis of response profiles demonstrated that soils below the row and those under trashing at 30 cm out from this row were separated from the other soils on PC1 and that the sample from the inter-row centre (60 cm out) under burning was separated from the others on PC2. Catabolic evenness was least for the latter soil. It was concluded that soil in the inter-row of burnt sugarcane receives few inputs of organic matter and that conversion to green cane harvesting with retention of a trash mulch greatly improves the organic matter, microbial and physical status of the inter-row soil.