<p><strong>Background and aims:</strong> The terrestrial biosphere’s ability to capture carbon is dependent upon soil nitrogen (N) availability, which might reduce as CO<sub>2</sub> increases, but global warming has the potential to offset CO<sub>2</sub> effects. Here we examine the interactive impact of elevated CO<sub>2</sub> (eCO<sub>2</sub>) and warming on soil N availability and transformations in a low-fertility native grassland in Tasmania, Australia.</p> <p><strong>Methods:</strong> Using ion exchange membranes, we examined soil nitrogen availability during the growing season from 2004 to 2010 in the TasFACE experiment. We also estimated soil N transformation rates using laboratory incubations.</p> <p><strong>Results:</strong> Soil N availability varied strongly over time but was more than doubled by experimental warming of 2°C, an impact that was consistent from the fifth year of the experiment to its conclusion. Elevated CO<sub>2</sub> reduced soil N availability by ∼28%, although this varied strongly over time. Treatment effects on potential N mineralisation also varied strongly from year to year but tended to be reduced by eCO<sub>2</sub> and increased by warming.</p> <p><strong>Conclusions:</strong> These results suggest that warming should increase soil N availability more strongly than it is suppressed by eCO<sub>2</sub> in low fertility grasslands such as this, stimulating terrestrial carbon sinks by preventing eCO<sub>2</sub>-induced nitrogen limitation of primary productivity.</p>