Biological soil crusts are a diverse community of bryophytes, lichens, algae, fungi and cyanobacteria, existing at the soil surface in ecosystems of low canopy cover. The role of crusts in plant recruitment has received little attention in hot deserts such as those of Australia, despite significant implications for vegetation management and restoration. This study characterizes broad changes in crust composition across gradients of rainfall and soil type and in response to disturbance and habitat fragmentation. This study goes on to explore the influence of different crust types on plant recruitment. Crusts that have been simplified through disturbance are contrasted to more complex crusts on little disturbed and recovering sites. In particular, the influence of crusts on vascular plant germination is explored through glass-house trials. Implications for vegetation dynamics and restoration are discussed.