Separate Superannuation Interest’s

A Superannuation Interest generally means all of the funds in a SMSF relating to a member is a superannuation interest, regardless of the components, such as <taxable> & <tax free> components, etc. This is different to a public offer fund (eg industry fund) that can have separate super interests for the same member in the same fund. 

However it is possible to have more than one Superannuation Interest in a SMSF too. This arises when a member commences a pension.
Often a SMSF may result with two separate interests when a member has commenced a pension and then commences working again and receives super contributions into the accumulation interest. This common example results in the member having two superannuation interests, the Pension Interest and the Accumulation Interest.
A separate superannuation interest can be formed in many ways such as the pension interest was commuted back to an accumulation interest, or an existing pension is commenced by starting it with only a portion of the accumulation interest, further that portion can be selected! which in itself provides for opportunities for creating a strategy. A pension is always treated as a separate superannuation interest accordingly there can be more than 1 pension [“s307-200(2)]. Read more on apportionment of income to pension and the accumulation interest for determining the tax free earnings.
Separate superannuation interests create flexibility and enable an adviser to create strategies to boost tax free amounts, a few examples are:

• Streaming taxable superannuation interests to tax dependants on payment of lump sum death benefits.
• Boosting tax free earnings for the life of the pension as earnings on a pension interest are allocated to the tax free and taxable portions at the commencement of the pension.
• If your under 60 a pension could still be paid tax free if paid from a tax free super interest.

Here’s what the ATO has to say <ATO-Link1 & Link2>.