Forty-four soils from under native vegetation and a range of management practices following clearing were analysed for ‘labile’ organic carbon (OC) using both the particulate organic carbon (POC) and the 333 mm KmnO₄ (MnoxC) methods. Although there was some correlation between the 2 methods, the POC method was more sensitive by about a factor of 2 to rapid loss in OC as a result of management or land-use change. Unlike the POC method, the MnoxC method was insensitive to rapid gains in TOC following establishment of pasture on degraded soil. The MnoxC method was shown to be particularly sensitive to the presence of lignin or lignin-like compounds and therefore is likely to be very sensitive to the nature of the vegetation present at or near the time of sampling and explains the insensitivity of this method to OC gain under pasture. The presence of charcoal is an issue with both techniques, but whereas the charcoal contribution to the POC fraction can be assessed, the MnoxC method cannot distinguish between charcoal and most biomolecules found in soil. Because of these limitations, the MnoxC method should not be applied indiscriminately across different soil types and management practices.